Software Development Write-Off: Revenue Expenditure Initially Capitalized, Later Abandoned, Eligible for Deduction.

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....Writing off towards software capital work-in-progress - It is not a case where the assessee purchased certain plant and machinery or incurred certain capital costs which were capitalised earlier to work-in-progress account, and later on, on abandoning the same, it was claimed as deduction. Rather it is a case of incurring revenue expenditure, which was initially capitalized and now written off because of abandoning the modules, that were no more required in the software development business. In our considered opinion, is eligible for deduction. - AT....