2019 (6) TMI 1000

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...., the Tribunal) in MP.No.383/Chny/2017 in ITA No.3039/Mds/ 2016 for the assessment year 2000-01. 3. The Revenue has filed this appeal by raising the following substantial questions of law : "i. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the expenditure incurred for purchase of computer to computer link software is revenue in nature especially when the software provides an enduring benefit over a period of time to the assessee by performing integrated market watch, market depth analysis, order entry, trade book, historic trade, etc where the analytical and historic data is gathered by the software in the present case and can be used for maximizing the profits market opportun....

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....as allowed by order dated 12.8.2016. As against the same, the Revenue was on appeal before the Tribunal and it was dismissed by the impugned order. Hence, the Revenue is now before us. 7. Mrs.R.Hemalatha, learned Senior Standing Counsel would vehemently contend that the software, which was licensed to the assessee, is not an upgradation software or a replacement of the existing software, but it is a new software installed for the first time in the computer system and it definitely goes to enhance their business activities and their income earning capacity. Thus, it has an enduring effect and qualifies as capital in nature. 8. In our considered view, the decision arrived at by the CIT(A) is just and proper. We say so for the following ....

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....ftware licensing agreement with the vendor. Copyright and Ownership : The software is the intellectual property of FTIL and its suppliers and is protected by local copyright law and international treaty provisions, whether registered or unregistered. Nothing in this proposal shall be deemed to be a transfer of intellectual property rights. Chona Financial Service Private Limited acquires only the non exclusive, non transferable, non assignable and limited right to use a software as permitted herein and do not acquire any rights of ownership in the software. The title or ownership of the physical carrier of the software as provided by FTIL hereunder is retained by FTIL and/or its suppliers. The customizations, modi....