2013 (2) TMI 108

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....N. Kumar J.- The Revenue has preferred this appeal against the order passed by the Appellate Tribunal holding that the provision for warranty is (not ?) a contingent liability as contended by the Revenue and that to use a software as required for a particular period, licence fee has to be paid and the said licence fee is a revenue expenditure and it would not become capital expenditure. 2. T....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....al expenditure incurred in the relevant previous year was only Rs.5,81,55,435 the deduction was given only to that extent and the remaining amount of Rs. 23,19,065 was added. The assessee challenged the said finding before the appellate authority. The appellate authority held that the entire amount of Rs. 6,04,74,500 is allowable as deduction. Aggrieved by these two findings, the Revenue preferred....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ition of the said right is allowable as revenue expenditure and these software's if they are licenced for a particular period, for utilising the same for the subsequent years fresh licence fee is to be paid. Therefore, without renewing the licence or without paying the fee on such renewal, it is not possible to use those softwares. In those, the findings recorded by the authorities that the fee pa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by the assessee in pursuance of the warranty, the estimate cannot be made regarding the amount to be claimed as deduction under the heading of "warranty". In this case, as there is no such evidence, the assessee is not entitled to the said benefit. 5. The law laid down by the apex court makes it clear the historical trend referred to therein is to the question whether in the past there was any....