2018 (9) TMI 220

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....eof would constitute capital expenditure or the same would be revenue expenditure. For the Assessment Year 2008-09, the assessee had claimed a total amount of Rs. 3,40,80,049/- as revenue expenditure under these heads in relation to acquisition of SAP and MS-Office software packages. The Assessing Officer had disallowed the entire expenditure claimed by the assessee as revenue expenditure but allowed depreciation thereon treating software package as capital assets. The particulars of the software and expenses for procuring licenses, maintenance, consultancy and technical support services have not been detailed in the assessment order but have been given under broad heads. But that factor is not of much relevance at this stage of the procee....

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....2(1) are attracted to these two items. Accordingly, the A.O. is directed to treat the expenditure for purchase of SAP license & MS Office license as capital expenditure and allow depreciation as per the provision of section 32(1). The A.O. is further directed to allow the remaining expenses as revenue expenditure. This ground of appeal is partly allowed." The assessee's appeal before the Tribunal on this count was allowed. The sums which were coming within the purview of the assessee's income on account of acquisition of the said two software packages constituted Rs. 1,76,98,890/- out of the total expenditure claimed by the assessee for Rs. 3,40,80,049/-. The Tribunal examined the issue and came to a finding that expenditure incurred towa....