2011 (2) TMI 454

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....ding Counsel for the appellant.   Mr. Kamal Sehgal, Advocate for the respondent   A DARSH KUMAR GOEL, J ( Oral) .   1. Since Registry has not been able to send the file on account of fire in the Court premises, learned counsel for the revenue has furnished copy of paper-book which is taken on record. We proceed to decide the matter after hearing learned counsel for the part....

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....he fact that the expenses were incurred in obtaining advantage of enduring nature and the expenditure was capitalized by the assessee itself?   iii) Whether on facts and in the circumstances of the case, the Hon'ble ITAT was right in holding that the assessee had 'put to use' the Plant & Machinery during the year relevant to A.Y. 1995-96 though the assessee had done only trial-run by 31.3.....

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.... accept the submission. Section 32 applies only for depreciation in respect of capital asset and not to revenue expenditure. In the present case, the Tribunal has recorded a finding that expenditure on the software development was revenue expenditure as under:-   "Ground of appeal Nos.4 and 5 are directed against disallowance of Rs.8,98,000/- spent on computer software. The learned Assessi....

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.... expenditure on software development to be revenue expenditure only. It is not the case of the revenue that the expenditure incurred is exceptionally high or otherwise of very special nature. I, therefore, hold that the expenditure had been rightly claimed by the assessee to be revenue expenditure for this year only. The learned Assessing Officer is, therefore, directed to allow the assessee full ....