https://www.taxtmi.com/caselaws?id=461363 ITAT DELHI partially allowed the appeal regarding software development expenses. The tribunal held that expenses for MS Office software, server upgradation, and software development charges were revenue expenditure as they were incurred to keep updated with technology changes. However, expenses for Modem & UPS purchases (Rs. 1,09,200) and billing software development charges (Rs. 11,30,400) were treated as capital expenditure since they provided enduring benefits and were part of profit-earning apparatus. The tribunal also deleted additions related to LTCG computation, finding Explanation to Section 73 inapplicable, and remanded the issue of brought forward losses set-off to AO for proper consideration. en-us Mon, 08 Aug 2022 00:00:00 +0530 Tue, 01 Apr 2025 19:43:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461363 ITAT DELHI partially allowed the appeal regarding software development expenses. The tribunal held that expenses for MS Office software, server upgradation, and software development charges were revenue expenditure as they were incurred to keep updated with technology changes. However, expenses for Modem & UPS purchases (Rs. 1,09,200) and billing software development charges (Rs. 11,30,400) were treated as capital expenditure since they provided enduring benefits and were part of profit-earning apparatus. The tribunal also deleted additions related to LTCG computation, finding Explanation to Section 73 inapplicable, and remanded the issue of brought forward losses set-off to AO for proper consideration. Case-Laws Income Tax Mon, 08 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461363