06 June 2010
Please clarify whether the expenditures as detailed below can be capitalized? 1. Tally software purchased 2. Additional stabilizers purchased for A/C units
10 June 2010
Tally is an application software .Therefore, purchase of application software though results in enduring benefit,the same cannot work on a stand alone basis. It is to be fitted into a computer system where system software is already in place. Thus, application software merely enhanced the productivity or efficiency of the business and has to be treated as REVENUE EXPENDITURE. Citation:- IBM India Ltd Vs. CIT (2007) 105 ITD (Bang).
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