CIT v. Asahi India Safety Glass Ltd.

346 ITR 329High Court2012#799 most cited

What is CIT v. Asahi India Safety Glass Ltd. authority for?

Expenses incurred for software license purchase, development of miscellaneous software, and maintenance of websites are considered revenue in nature. Such expenses are deductible in the year they are incurred.

129

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2013 to 2026.

Also referred to as

Asahi India Safety Glass Ltd. · 346 ITR 329 · CIT v Asahi · Section 37(1) · revenue expenditure · capital expenditure · software license purchase · software development · website maintenance · business deduction · deductibility of software expenses · computer software expenditure

Also reported as

15 Taxmann.com 382203 Taxmann 277245 CTR 529

Sections most often in play

Section 143(3)Section 36(1)(vii)Section 37(1)Section 14ASection 36(2)Section 80HHCSection 2(47)Section 28(iiid)
Read the full judgment

Issues it is cited on

section 35denduring benefitgoing concernsection 80hhccommercial rightssection 80hhcomputer softwarebenchmarking analysiscup methodsection 35section 92ca(3)intangible assets

Judgments citing CIT v. Asahi India Safety Glass Ltd.

Kansai Nerolac Paints Ltd, Mumbai vs. Addl CIT RG 6(2), Mumbai

ITA 7196/MUM/2013[2007-08]Status: DisposedITAT Mumbai15 May 2019AY 2007-08

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6789/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ Dcit Circle -6(2) M/S. Kansai Nerolac Paints Ltd., R.No. 563, Aayakar Bhavan, Nerolac House, K.G. Marg, M.K. Road, Churchgate, V. Lower Parel, Mumbai-400020 Mumbai-400013 स्थायी ऱेखा सं./ Pan :Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. आयकर अपीऱ सं./I.T.A. No.7196/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ M/S. Kansai Nerolac Paints Addl. Cit Circle -6(2) Ltd., R.No. 669, Nerolac House, K.G. Marg, Aayakar Bhavan, V. Lower Parel, Mumbai 400013 M.K. Road, Mumbai- 400020 स्थायी ऱेखा सं./ Pan : Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Ms. Aarti VissanjiFor Respondent: Shri. Rignesh K. Das (DR)
Section 143(3)Section 144C(3)Section 145ASection 14A

…ted 19.03.2018 in assessee‟s own case has decided the issue in favour of the assessee by following the decision of Hon‟ble Delhi High Court in the case of CIT v. Amway India Enterprises (2012) 346 ITR 341(Delhi) and CIT v. Asahi India Safety Glass Ltd. (2012) 346 ITR 329 (Del) . The said order of the tribunal in ITA no. 212/Mum/2008 for AY 2004-05 in assessee‟s own case is placed in file. 12. The Ld. DR on the other hand relied upon the appellate order passed by Ld. CIT(A). 13. We have considered rival contentions and have perused the material on record .We have observed that the assessee has incurred expenditure…

DCIT 6(2), Mumbai vs. Kansai Nerolac Paints Ltd, Mumbai

ITA 6789/MUM/2013[2007-08]Status: DisposedITAT Mumbai15 May 2019AY 2007-08

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6789/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ Dcit Circle -6(2) M/S. Kansai Nerolac Paints Ltd., R.No. 563, Aayakar Bhavan, Nerolac House, K.G. Marg, M.K. Road, Churchgate, V. Lower Parel, Mumbai-400020 Mumbai-400013 स्थायी ऱेखा सं./ Pan :Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. आयकर अपीऱ सं./I.T.A. No.7196/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ M/S. Kansai Nerolac Paints Addl. Cit Circle -6(2) Ltd., R.No. 669, Nerolac House, K.G. Marg, Aayakar Bhavan, V. Lower Parel, Mumbai 400013 M.K. Road, Mumbai- 400020 स्थायी ऱेखा सं./ Pan : Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Ms. Aarti VissanjiFor Respondent: Shri. Rignesh K. Das (DR)
Section 143(3)Section 144C(3)Section 145ASection 14A

…ted 19.03.2018 in assessee‟s own case has decided the issue in favour of the assessee by following the decision of Hon‟ble Delhi High Court in the case of CIT v. Amway India Enterprises (2012) 346 ITR 341(Delhi) and CIT v. Asahi India Safety Glass Ltd. (2012) 346 ITR 329 (Del) . The said order of the tribunal in ITA no. 212/Mum/2008 for AY 2004-05 in assessee‟s own case is placed in file. 12. The Ld. DR on the other hand relied upon the appellate order passed by Ld. CIT(A). 13. We have considered rival contentions and have perused the material on record .We have observed that the assessee has incurred expenditure…

Cwt India P.Ltd, Mumbai vs. DCIT (OSD) RG 8(1), Mumbai

In the result, appeals filed by the assessee for assessment years 2009-

ITA 1588/MUM/2014[2009-10]Status: DisposedITAT Mumbai01 May 2019AY 2009-10

Bench: Shri R.C. Sharma (Am) & Shri Ram Lal Negi (Jm) Assessment Year: 2009-10 Assessment Year: 2010-11 Assessment Year: 2011-12 & Assessment Year: 2012-13 M/S Cwt India Private Limited, The Assistant Commissioner Of Unit No. 2, Raheja Centre, Income Tax-9(2)(2), Ground Floor, Aayakar Bhavan, Free Press Journal Marg, Vs. Mumbai - 400020 Nariman Point, Mumbai – 400021 Pan : Aaaci7084H (Appellant) (Respondent)

For Appellant: Shri Mukesh Butani/For Respondent: Saurabh Deshpande /
Section 115JSection 143Section 143(3)Section 144CSection 144C(1)Section 144C(5)Section 92C

…its test and functional test have to be evaluated. The Ld. counsel further relying on the decision of the Hon’ble Bombay High Court in the case Raychem RPG Ltd. 346 ITR 138 and the decision of the Hon’ble Delhi High Court in the case of Asahi Safety Glass Ltd 346 ITR 329, submitted that this issue is covered in favour of the assessee by the above said decisions. 19. On the other hand, the Ld. DR relying on the assessment order passed in terms of the directions issued under section 144C (5) of the Act by the Ld. DRP, submitted that the Ld. DRP has rightly confirmed the action of AO in holding the software expendi…

Shri Vinay Bhasin, New Delhi vs. JCIT, New Delhi

In the result, the appeal of assessee is partly allowed

ITA 5822/DEL/2015[2011-12]Status: DisposedITAT Delhi23 Apr 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Shri L.P. Sahuassessment Year: 2011-12 Vs Mr. Vinay Bhasin Jcit C-14, South Extension, Range-37 Part-Ii, New Delhi. New Delhi.

Section 143(1)Section 14A

…before authorities below and submitted that expenses were incurred on account of upgradation/subscription of software which is not capital in nature. He has relied upon the judgment of the Delhi High Court in the case of CIT vs. Asahi India Safety glass Ltd. 346 ITR 329 in which it was held as under: “Software is nothing but another word for computer programmes, i.e. instructions that make the hardware work. Software is broadly of two types, i.e. the systems software, which is also known as the operating system which controls the working of the computer; while the other being applications such as word processing…

Stmicroelectronics Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal is partly allowed as discussed above

ITA 4888/DEL/2011[2007-08]Status: DisposedITAT Delhi19 Mar 2019AY 2007-08

Bench: : Shri Bhavnesh Saini & Shri L.P. Sahu

Section 143(3)Section 144CSection 234ASection 271(1)(c)

…ii) such software does not constitute a profit earning apparatus and merely enable the appellant to efficiently conduct its business. The aforesaid decision has been affirmed by the Hon’ble Delhi High Court in the case of CIT vs Asahi India Safety Glass Ltd : 346 ITR 329. 27.1 It was further submitted that Tribunal while deciding the appeal of the assessee for AY 2006-07 (ITA No 5058/Del/2010) involving identical issue deleted the adjustment made by the assessing officer holding that license fee paid by the appellant is to be treated as revenue in nature. 23 28. We have duly considered the rival submissions Sinc…

ACIT, Moradabad vs. M/S. Jubilant Organosyes Ltd., Uttar Pradesh

The appeal is dismissed

ITA 4975/DEL/2012[2008-09]Status: DisposedITAT Delhi12 Mar 2019AY 2008-09

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…Co.[2003] 181 CTR (Delhi) 378, Para 4, Amway India Enterprises vs. DCIT [(2008) 111 ITD 112 (Delhi) (SB)] affirmed by Delhi High Court in CIT vs. Amway India Enterprises [2012] 346 ITR 341 (Delhi), (Refer para 6) ,CIT vs. Asahi India Safety Glass Ltd.[(2012) 346 ITR 329 (Delhi)] (Refer para 9, 10), Sumitomo Corpn. India (P.) Ltd. v. Addl. CIT [2005] 1 SOT 91 (Delhi), Para 8, Bank of Punjab Ltd. v. Jt. CIT[2002] 122 Taxman 235 (Chd.) (Mag.) ,Alembic Chemical Works Co. Ltd. v. CIT[1989] 177 ITR 377 (SC), ,Arch Finance Ltd. vs. ACIT[(2007) 165 Taxman 188 (Delhi)(MAG.)], Business Information Processing Services vs.…

ACIT, Moradabad vs. M/S Jubliant Organosys Ltd., Uttar Pradesh

The appeal is dismissed

ITA 2596/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…Co.[2003] 181 CTR (Delhi) 378, Para 4, Amway India Enterprises vs. DCIT [(2008) 111 ITD 112 (Delhi) (SB)] affirmed by Delhi High Court in CIT vs. Amway India Enterprises [2012] 346 ITR 341 (Delhi), (Refer para 6) ,CIT vs. Asahi India Safety Glass Ltd.[(2012) 346 ITR 329 (Delhi)] (Refer para 9, 10), Sumitomo Corpn. India (P.) Ltd. v. Addl. CIT [2005] 1 SOT 91 (Delhi), Para 8, Bank of Punjab Ltd. v. Jt. CIT[2002] 122 Taxman 235 (Chd.) (Mag.) ,Alembic Chemical Works Co. Ltd. v. CIT[1989] 177 ITR 377 (SC), ,Arch Finance Ltd. vs. ACIT[(2007) 165 Taxman 188 (Delhi)(MAG.)], Business Information Processing Services vs.…

Jubilant Organosys Ltd., Noida vs. Addl. CIT, Moradabad

The appeal is dismissed

ITA 2497/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…Co.[2003] 181 CTR (Delhi) 378, Para 4, Amway India Enterprises vs. DCIT [(2008) 111 ITD 112 (Delhi) (SB)] affirmed by Delhi High Court in CIT vs. Amway India Enterprises [2012] 346 ITR 341 (Delhi), (Refer para 6) ,CIT vs. Asahi India Safety Glass Ltd.[(2012) 346 ITR 329 (Delhi)] (Refer para 9, 10), Sumitomo Corpn. India (P.) Ltd. v. Addl. CIT [2005] 1 SOT 91 (Delhi), Para 8, Bank of Punjab Ltd. v. Jt. CIT[2002] 122 Taxman 235 (Chd.) (Mag.) ,Alembic Chemical Works Co. Ltd. v. CIT[1989] 177 ITR 377 (SC), ,Arch Finance Ltd. vs. ACIT[(2007) 165 Taxman 188 (Delhi)(MAG.)], Business Information Processing Services vs.…

DCIT, Cir-22, Kolkata vs. M/S. Lovelock & Lewes, Kolkata

In the result, the appeal of the Revenue for A

ITA 1021/KOL/2017[2010-11]Status: DisposedITAT Kolkata08 Mar 2019AY 2010-11

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri A.T. Varkey

Section 143(3)

…ITA Nos. 1020 & 1021/KOL/2017 Assessment Years: 2007-2008 & 2010-2011 M/s. Lovelock & Lewes IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA ‘A’ BENCH, KOLKATA Before Shri P.M. Jagtap, Vice-President (KZ) and Shri A.T. Varkey, Judicial Member I.T.A. Nos. 1020 & 1021/KOL/2017 Assessment Years: 2007-2008 & 2010-2011 Deputy Commissioner of Income Tax,......................................Appellant Circle-22, Kolkata, 54, Rafi Ahmed Kidwai Road, 4th Floor, Kolkata-700 016 -Vs.- M/s. Lovelock & Lewes,...........................................................Respondent Plot NY 14, Block-EP, Sector-V, Salt Lake, Ko…

DCIT, Cir-22, Kolkata vs. M/S. Lovelock & Lewes, Kolkata

In the result, the appeal of the Revenue for A

ITA 1020/KOL/2017[2007-08]Status: DisposedITAT Kolkata08 Mar 2019AY 2007-08

Bench: Shri P.M. Jagtap, Vice-(Kz) & Shri A.T. Varkey

Section 143(3)

…ITA Nos. 1020 & 1021/KOL/2017 Assessment Years: 2007-2008 & 2010-2011 M/s. Lovelock & Lewes IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA ‘A’ BENCH, KOLKATA Before Shri P.M. Jagtap, Vice-President (KZ) and Shri A.T. Varkey, Judicial Member I.T.A. Nos. 1020 & 1021/KOL/2017 Assessment Years: 2007-2008 & 2010-2011 Deputy Commissioner of Income Tax,......................................Appellant Circle-22, Kolkata, 54, Rafi Ahmed Kidwai Road, 4th Floor, Kolkata-700 016 -Vs.- M/s. Lovelock & Lewes,...........................................................Respondent Plot NY 14, Block-EP, Sector-V, Salt Lake, Ko…

DCIT, New Delhi vs. M/S Oxigen Services India Pvt. Ltd., New Delhi

In the result both the appeals of the revenue are dismissed

ITA 3766/DEL/2015[2010-11]Status: DisposedITAT Delhi15 Feb 2019AY 2010-11

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Appellant: Smt NainaSoin Kapil, CIT DRFor Respondent: Sh SatyenSethi, Advocate
Section 14Section 143(3)

…umstances involved in these two assessment years. From the record we could also find that while granting relief Ld. CIT(A) also placed reliance on the decision of the Hon’ble jurisdictional High Court in the case of CIT vs. Asahi India safety Glass Ltd (2012) 346 ITR 329 (Del). There is no reason as to why we should not follow this line of decisions which are applicable to the facts of the case on hand. We, therefore, while respectfully following the decisions of the Hon’ble jurisdictional High Court and also the view taken by a coordinate Bench of this Tribunal in assessee’s own case for the assessment year 2009…

DCIT, New Delhi vs. M/S Oxigen Services India Pvt. Ltd., New Delhi

In the result both the appeals of the revenue are dismissed

ITA 3765/DEL/2015[2008-09]Status: DisposedITAT Delhi15 Feb 2019AY 2008-09

Bench: Shri R.K. Panda & Shri K. Narasimha Chary

For Appellant: Smt NainaSoin Kapil, CIT DRFor Respondent: Sh SatyenSethi, Advocate
Section 14Section 143(3)

…umstances involved in these two assessment years. From the record we could also find that while granting relief Ld. CIT(A) also placed reliance on the decision of the Hon’ble jurisdictional High Court in the case of CIT vs. Asahi India safety Glass Ltd (2012) 346 ITR 329 (Del). There is no reason as to why we should not follow this line of decisions which are applicable to the facts of the case on hand. We, therefore, while respectfully following the decisions of the Hon’ble jurisdictional High Court and also the view taken by a coordinate Bench of this Tribunal in assessee’s own case for the assessment year 2009…

DCIT, New Delhi vs. M/S Oxigen Services India Pvt. Ltd., New Delhi

In the result, the appeal filed by the revenue is dismissed

ITA 3812/DEL/2015[2009-10]Status: DisposedITAT Delhi07 Jan 2019AY 2009-10

Bench: Sh. R.K. Panda & Sh. Sudhanshu Srivastavaassessment Year: 2009-10 Dcit Oxigen Services India Pvt. Vs Circle 19 (1) Ltd. Unit No.31, Tribhuvan New Delhi Complex, Ishwar Nagar, New Friends Colony, New Delhi -110065 Pan : Aabci1405K (Appellant) (Respondent)

Section 36

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘E’, NEW DELHI BEFORE SH. R.K. PANDA, ACCOUNTANT MEMBER AND SH. SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Assessment Year: 2009-10 DCIT Oxigen Services India Pvt. Vs Circle 19 (1) Ltd. Unit No.31, Tribhuvan New Delhi Complex, Ishwar Nagar, New Friends Colony, New Delhi -110065 PAN : AABCI1405K (APPELLANT) (RESPONDENT) Appellant by Sh. Rinku Singh, Sr. DR Respondent by Sh. Satyam Sethi, Advocate Date of hearing: 26/12/2018 Date of Pronouncement: 07/01/2019 ORDER PER R.K. PANDA, AM: This appeal filed by the revenue is directed against the order dated 09.03.2015 pa…

DCIT, Gurgaon vs. M/S. Dlf Projects Ltd., Gurgaon

Appeal stands dismissed

ITA 5178/DEL/2014[2009-10]Status: DisposedITAT Delhi27 Nov 2018AY 2009-10

Bench: Shri R.K. Panda & Shri Sudhanshu Srivastavaassessment Year: 2009-10 Dcit, Dlf Projects Ltd. Circle 1(1), (Formerly Dt Projects Ltd.), Vs Gurgaon. 3Rd Floor, Shopping Mall, Arjun Nagar, Dlf City, Phase-I, Gurgaon. (Pan: Aaccd3093R) (Appellant) (Respondent)

For Appellant: Shri Surender Pal, Sr. DRFor Respondent: S/Shri R.S. Singhvi, Satyejeet, CAs
Section 192Section 195Section 40

…ITA No. 5178/Del/2014 Assessment year 2009-10 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’ NEW DELHI BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER Assessment year: 2009-10 DCIT, DLF Projects Ltd. Circle 1(1), (Formerly DT Projects Ltd.), vs Gurgaon. 3rd Floor, Shopping Mall, Arjun Nagar, DLF City, Phase-I, Gurgaon. (PAN: AACCD3093R) (Appellant) (Respondent) Appellant by: Shri Surender Pal, Sr. DR Respondent by: S/Shri R.S. Singhvi, Satyejeet, CAs Date of Hearing : 30.08.2018 Date of Pronouncement: 27.11.2018 ORDER PER SUDHANSHU SRIVASTAVA, J.M. This appe…

Modi Mundipharma Pvt. Ltd., New Delhi vs. Addl. CIT, New Delhi

ITA 4086/DEL/2015[2010-11]Status: DisposedITAT Delhi25 Oct 2018AY 2010-11

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Sanat Kapoor, AdvocateFor Respondent: Shri James Singson, Senior DR
Section 37

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘A’ : NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.4086/Del./2015 (ASSESSMENT YEAR : 2010-11) M/s. Modi Mundipharma Pvt. Ltd., vs. Addl.CIT, 98, Nehru Place, Range 5, New Delhi – 110 019. New Delhi. (PAN : AAACM2303F) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Sanat Kapoor, Advocate REVENUE BY : Shri James Singson, Senior DR Date of Hearing : 24.10.2018 Date of Order : 25.10.2018 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : The appellant, M/s. Modi Mundipharma Pvt. Ltd. (hereinafter referred to as ‘the asse…

M/S. Hughes Communication India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed and that of

ITA 2345/DEL/2014[2007-08]Status: DisposedITAT Delhi27 Sept 2018AY 2007-08

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri F.R. Meena, Sr. DR
Section 41(1)

…High Court in CIT vs. Amway India Enterprises (2012) 346 ITR 341 (Del), has held that expenditure incurred on purchase of application software is allowable as revenue expenditure. Similar view has been taken in CIT vs. Asahi India Safety Glass Ltd. (2012) 346 ITR 329 (Del) by holding that the expenditure incurred by the assessee on software is allowable as revenue expenditure, more so, when it is towards purchase of an application software. When we consider the detail of software expenses incurred by the assessee, it becomes manifest that the same is liable to be treated as a revenue expenditure and not a c…

M/S. Hughes Communication India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed and that of

ITA 2344/DEL/2014[2006-07]Status: DisposedITAT Delhi27 Sept 2018AY 2006-07

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri F.R. Meena, Sr. DR
Section 41(1)

…High Court in CIT vs. Amway India Enterprises (2012) 346 ITR 341 (Del), has held that expenditure incurred on purchase of application software is allowable as revenue expenditure. Similar view has been taken in CIT vs. Asahi India Safety Glass Ltd. (2012) 346 ITR 329 (Del) by holding that the expenditure incurred by the assessee on software is allowable as revenue expenditure, more so, when it is towards purchase of an application software. When we consider the detail of software expenses incurred by the assessee, it becomes manifest that the same is liable to be treated as a revenue expenditure and not a c…

M/S. Hughes Communication India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed and that of

ITA 2343/DEL/2014[2005-06]Status: DisposedITAT Delhi27 Sept 2018AY 2005-06

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri F.R. Meena, Sr. DR
Section 41(1)

…High Court in CIT vs. Amway India Enterprises (2012) 346 ITR 341 (Del), has held that expenditure incurred on purchase of application software is allowable as revenue expenditure. Similar view has been taken in CIT vs. Asahi India Safety Glass Ltd. (2012) 346 ITR 329 (Del) by holding that the expenditure incurred by the assessee on software is allowable as revenue expenditure, more so, when it is towards purchase of an application software. When we consider the detail of software expenses incurred by the assessee, it becomes manifest that the same is liable to be treated as a revenue expenditure and not a c…

DCIT, New Delhi vs. M/S. Hughes Communication India Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed and that of

ITA 2272/DEL/2014[2007-08]Status: DisposedITAT Delhi27 Sept 2018AY 2007-08

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri F.R. Meena, Sr. DR
Section 41(1)

…High Court in CIT vs. Amway India Enterprises (2012) 346 ITR 341 (Del), has held that expenditure incurred on purchase of application software is allowable as revenue expenditure. Similar view has been taken in CIT vs. Asahi India Safety Glass Ltd. (2012) 346 ITR 329 (Del) by holding that the expenditure incurred by the assessee on software is allowable as revenue expenditure, more so, when it is towards purchase of an application software. When we consider the detail of software expenses incurred by the assessee, it becomes manifest that the same is liable to be treated as a revenue expenditure and not a c…

DCIT, New Delhi vs. M/S. Hughes Communication India Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed and that of

ITA 2271/DEL/2014[2006-07]Status: DisposedITAT Delhi27 Sept 2018AY 2006-07

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Shri F.R. Meena, Sr. DR
Section 41(1)

…High Court in CIT vs. Amway India Enterprises (2012) 346 ITR 341 (Del), has held that expenditure incurred on purchase of application software is allowable as revenue expenditure. Similar view has been taken in CIT vs. Asahi India Safety Glass Ltd. (2012) 346 ITR 329 (Del) by holding that the expenditure incurred by the assessee on software is allowable as revenue expenditure, more so, when it is towards purchase of an application software. When we consider the detail of software expenses incurred by the assessee, it becomes manifest that the same is liable to be treated as a revenue expenditure and not a c…