2020 (5) TMI 264

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....as Companies worldwide both onshore and offshore installations. 3. The petitioner has sought to challenge the order at Annexure-A dated 11.03.2020 whereby the Principal Commissioner of Income Tax while considering the application for stay filed in an appeal preferred before the Commissioner of Income Tax by the petitioner has disposed of the application with a direction to the assessee to pay 10% of the disputed amount by 16.03.2020 and the remaining amount to be paid in two equal installments in April 2020 and May 2020. 4. It is submitted that pursuant to the scrutiny assessment under Section 143(3) of the Income Tax Act, 1961 as completed by the Assistant Commissioner of Income Tax, total income of Rs. 8,38,67,334/- was determined a....

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....are by way of licencing is for limited period, the expenditure incurred for acquisition of such use of software is allowable as revenue expenditure. The reliance is also placed on the decision of this Court in the case of Commissioner of Income-Tax and another v. IBM India Ltd. reported in (2013) 357 ITR 88 (Karn) and specific reliance is placed on para-10 wherein this Court has considered the said aspect and also the aspect as to whether the expenditure incurred for such software licencing could be classified as capital expenditure and has held that the expenditure incurred towards obtaining the benefits by way of software licencing agreement is to be treated as revenue expenditure. 9. Learned counsel appearing for the Revenue submits t....