https://www.taxtmi.com/caselaws?id=788464 Software expenses incurred for annual maintenance, database support and licence renewal were treated as recurring period costs, not capital expenditure, because they only granted subscription or usage rights for fixed periods and did not transfer ownership or create any proprietary software asset or enduring benefit. Applying prior decisions on similar software and subscription payments, the expenditure was held deductible as revenue expenditure under Section 37(1) of the Income-tax Act, 1961. The Revenue's appeal was dismissed and the addition made by the Assessing Officer was deleted. en-us Mon, 09 Feb 2026 00:00:00 +0530 Mon, 23 Mar 2026 08:49:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788464 Software expenses incurred for annual maintenance, database support and licence renewal were treated as recurring period costs, not capital expenditure, because they only granted subscription or usage rights for fixed periods and did not transfer ownership or create any proprietary software asset or enduring benefit. Applying prior decisions on similar software and subscription payments, the expenditure was held deductible as revenue expenditure under Section 37(1) of the Income-tax Act, 1961. The Revenue's appeal was dismissed and the addition made by the Assessing Officer was deleted. Case-Laws Income Tax Mon, 09 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788464