https://www.taxtmi.com/caselaws?id=359423 Expenditure on specialised banking software was treated as revenue expenditure because the software was acquired only as limited-duration licences, created no permanent or enduring proprietary right, and served as a tool to improve operational efficiency rather than alter the profit-making apparatus. Applying the functional test, the court noted that spending which helps the business structure operate more efficiently while leaving the source of income intact is revenue in nature. The presence of depreciation entries in the tax schedule was not conclusive. The outlay was therefore held to be revenue expenditure and not capital expenditure. en-us Tue, 17 Apr 2018 00:00:00 +0530 Mon, 30 Apr 2018 09:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=359423 Expenditure on specialised banking software was treated as revenue expenditure because the software was acquired only as limited-duration licences, created no permanent or enduring proprietary right, and served as a tool to improve operational efficiency rather than alter the profit-making apparatus. Applying the functional test, the court noted that spending which helps the business structure operate more efficiently while leaving the source of income intact is revenue in nature. The presence of depreciation entries in the tax schedule was not conclusive. The outlay was therefore held to be revenue expenditure and not capital expenditure. Case-Laws Income Tax Tue, 17 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=359423