https://www.taxtmi.com/caselaws?id=447449 The Delhi HC ruled in favor of the assessee on transfer pricing and expenditure classification issues. The court held that rejection of comparables as functionally dissimilar was covered by precedent in ST Microelectronics case. Regarding software license expenses, the court determined that expenditure on licensed software without ownership, used for business operations with duration not exceeding one year, constitutes revenue expenditure rather than capital expenditure. The enduring benefit test was deemed inconclusive, following Asahi India Safety Glass precedent that expenses enabling profit-making structure to work efficiently while leaving source untouched are revenue expenses. Similarly, employee training expenses were classified as revenue expenditure, as they don't alter the profit structure and employees may leave the organization. No substantial questions of law arose on these issues. en-us Thu, 07 Dec 2023 00:00:00 +0530 Mon, 25 Dec 2023 10:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447449 The Delhi HC ruled in favor of the assessee on transfer pricing and expenditure classification issues. The court held that rejection of comparables as functionally dissimilar was covered by precedent in ST Microelectronics case. Regarding software license expenses, the court determined that expenditure on licensed software without ownership, used for business operations with duration not exceeding one year, constitutes revenue expenditure rather than capital expenditure. The enduring benefit test was deemed inconclusive, following Asahi India Safety Glass precedent that expenses enabling profit-making structure to work efficiently while leaving source untouched are revenue expenses. Similarly, employee training expenses were classified as revenue expenditure, as they don't alter the profit structure and employees may leave the organization. No substantial questions of law arose on these issues. Case-Laws Income Tax Thu, 07 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447449