https://www.taxtmi.com/caselaws?id=431073 The revenue's appeal against the ITAT's decision to treat capital expenditure for new product development as revenue expenditure was dismissed. The CIT (A) allowed the deduction as revenue expenditure, considering it part of the existing business line, which was upheld based on precedents. The court emphasized the enduring benefit test and business necessity in distinguishing capital and revenue expenditure. As no enduring benefit asset was created from the new software development, the expenditure was deemed revenue in nature. The ITAT's decision was upheld, and the appeals were dismissed. en-us Fri, 02 Dec 2022 00:00:00 +0530 Fri, 13 Oct 2023 16:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431073 The revenue's appeal against the ITAT's decision to treat capital expenditure for new product development as revenue expenditure was dismissed. The CIT (A) allowed the deduction as revenue expenditure, considering it part of the existing business line, which was upheld based on precedents. The court emphasized the enduring benefit test and business necessity in distinguishing capital and revenue expenditure. As no enduring benefit asset was created from the new software development, the expenditure was deemed revenue in nature. The ITAT's decision was upheld, and the appeals were dismissed. Case-Laws Income Tax Fri, 02 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431073