Cap and Rev exp
This query is : Resolved
09 June 2009
if purchase software of Rs: 50000 in a compnay ,wheather we need to consider it as addtions to FA
09 June 2009
Depends upon case to case. If one time cost and future benefit available then capital or if yearly then revenue
10 June 2009
No. In the following cases the expenditure on software was held to be of revenue nature for the main reason that acquisition of software merely enhanced productivity or efficiency and it gets obsolete in a short span of time and needs to be updated.
1)CIT Vs Southern Roadways Ltd (2008) 24(I)ITCL 118 (Mad).
2)IBM India Ltd Vs CIT (2007) 290 ITR (AT) 183(Bang-Tri).
3) CIT Vs G.E.Power Services India Ltd (2008) 23(I) ITCL 18(Del).
1)CIT Vs Southern Roadways Ltd (2008) 24(I)ITCL 118 (Mad).
2)IBM India Ltd Vs CIT (2007) 290 ITR (AT) 183(Bang-Tri).
3) CIT Vs G.E.Power Services India Ltd (2008) 23(I) ITCL 18(Del).
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