Software depreciation 60%, sales promotion expense revenue, share premium valuation upheld. Genuine transaction. Recompute tax after PGBP loss.

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....Depreciation on computer software allowed at 60% as software guides hardware and is integral part of hardware, following coordinate bench ruling. Sales promotion expenses not capitalized as AS-7 not applicable to developers, following precedent. Share premium addition u/s 56(2)(viib) deleted as assessee followed Rule 11UA valuation at Rs. 69.41 per share, furnished valuation report to AO, and transaction genuine without unaccounted money, relying on rulings. AO directed to recompute tax payable after giving effect to PGBP loss. Relevant legal terminology used, including sections, rules, accounting standards, and judicial precedents.....