https://www.taxtmi.com/caselaws?id=757661 The ITAT Ahmedabad allowed the assessee's appeal regarding disallowance of product development expenses. The AO incorrectly presumed a software development project (ProHR) was completed, when it was actually abandoned due to technological obsolescence before initial customer trials. Since the incomplete project provided no enduring benefit and no new software existed, the tribunal held the written-off expenses were revenue in nature rather than capital. The addition made by lower authorities was deleted, and the expenses were allowed as deductible. en-us Thu, 22 Aug 2024 00:00:00 +0530 Fri, 30 Aug 2024 08:38:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757661 The ITAT Ahmedabad allowed the assessee's appeal regarding disallowance of product development expenses. The AO incorrectly presumed a software development project (ProHR) was completed, when it was actually abandoned due to technological obsolescence before initial customer trials. Since the incomplete project provided no enduring benefit and no new software existed, the tribunal held the written-off expenses were revenue in nature rather than capital. The addition made by lower authorities was deleted, and the expenses were allowed as deductible. Case-Laws Income Tax Thu, 22 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757661