https://www.taxtmi.com/caselaws?id=341849 Section 40(a)(ia) could not be used to disallow depreciation claimed under section 32 on capitalised software expenditure, because depreciation is a statutory allowance on an asset and not an outgoing expenditure otherwise deductible in computing business income. Where the underlying payment has been capitalised and no revenue deduction was claimed, any failure to deduct tax at source has to be dealt with under the TDS provisions, not by denying depreciation. The depreciation claim on the capitalised software asset was therefore allowed. en-us Thu, 13 Apr 2017 00:00:00 +0530 Wed, 19 Apr 2017 07:04:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=341849 Section 40(a)(ia) could not be used to disallow depreciation claimed under section 32 on capitalised software expenditure, because depreciation is a statutory allowance on an asset and not an outgoing expenditure otherwise deductible in computing business income. Where the underlying payment has been capitalised and no revenue deduction was claimed, any failure to deduct tax at source has to be dealt with under the TDS provisions, not by denying depreciation. The depreciation claim on the capitalised software asset was therefore allowed. Case-Laws Income Tax Thu, 13 Apr 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=341849