https://www.taxtmi.com/caselaws?id=754269 Section 40(a)(i)/(ia) does not disallow depreciation on software that has been capitalised, because the provision applies to amounts otherwise deductible as business expenditure and not to a statutory depreciation allowance on a capital asset; the assessee's claim on software depreciation was therefore allowed. The software transaction analysis also noted that mere use of a copyrighted article does not, by itself, constitute royalty where no right to commercially exploit the copyright is transferred, and the treaty override under section 90(2) was relevant where applicable. Server and network equipment were treated as integral to the computer system, so higher depreciation as computer assets was upheld. en-us Thu, 30 May 2024 00:00:00 +0530 Wed, 19 Jun 2024 10:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754269 Section 40(a)(i)/(ia) does not disallow depreciation on software that has been capitalised, because the provision applies to amounts otherwise deductible as business expenditure and not to a statutory depreciation allowance on a capital asset; the assessee's claim on software depreciation was therefore allowed. The software transaction analysis also noted that mere use of a copyrighted article does not, by itself, constitute royalty where no right to commercially exploit the copyright is transferred, and the treaty override under section 90(2) was relevant where applicable. Server and network equipment were treated as integral to the computer system, so higher depreciation as computer assets was upheld. Case-Laws Income Tax Thu, 30 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754269