https://www.taxtmi.com/caselaws?id=372219 The High Court held that the expenditure incurred by the assessee for developing/upgrading software should be treated as revenue expenditure, not capital expenditure. The Court disagreed with the Tribunal's classification based on a previous case, emphasizing that the nature of the expenses should be considered independently of accounting treatment. The Court referenced precedents supporting software upgrade expenses as revenue expenditures and concluded in favor of the assessee, restoring the Commissioner of Income Tax (Appeals) order. The appeals were allowed in favor of the assessee. en-us Tue, 27 Nov 2018 00:00:00 +0530 Wed, 19 Dec 2018 09:14:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=372219 The High Court held that the expenditure incurred by the assessee for developing/upgrading software should be treated as revenue expenditure, not capital expenditure. The Court disagreed with the Tribunal's classification based on a previous case, emphasizing that the nature of the expenses should be considered independently of accounting treatment. The Court referenced precedents supporting software upgrade expenses as revenue expenditures and concluded in favor of the assessee, restoring the Commissioner of Income Tax (Appeals) order. The appeals were allowed in favor of the assessee. Case-Laws Income Tax Tue, 27 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=372219