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The Tax Publishers Bosch Rexroth (India) Ltd. v. DCIT [ITA No. 879/Ahd/2013 & 3189/Ahd/2015, dt. 2-5-2016] : 2016 TaxPub(DT) 2225 (Ahd-Trib) Allowability of application software expenditure *Facts:* Assessee had spent some application software which resulted in upgrading of existing software and better operational efficiency. This was disallowed by assessing officer and upheld by Commissioner (Appeals) holding it as a capital expenditure. On further appeal: Held in favour of the assessee that the application software was an allowable expenditure as it did not have a shelf life and there was no enduring benefit which arose out of the same. Assessees own case of earlier years and CIT v. Asahi India Safety Glass Ltd., reported in [2011] 16 taxmann.com 382 (Delhi) was applied. Reference be made to Flash mailer 153 Indian Aluminium company Limited v. CIT/Kolkata high court/dtd. 18-3-2016/assessment year 1997-98 where on similar facts application software was held to be a revenue expenditure.

The Tax Publishers

Bosch Rexroth (India) Ltd. v. DCIT [ITA No. 879/Ahd/2013 & 3189/Ahd/2015, dt. 2-5-2016] : 2016 TaxPub(DT) 2225 (Ahd-Trib)

Allowability of application software expenditure

Facts:

Assessee had spent some application software which resulted in upgrading of existing software and better operational efficiency. This was disallowed by assessing officer and upheld by Commissioner (Appeals) holding it as a capital expenditure. On further appeal:

Held in favour of the assessee that the application software was an allowable expenditure as it did not have a shelf life and there was no enduring benefit which arose out of the same.

Assessees own case of earlier years and CIT v. Asahi India Safety Glass Ltd., reported in [2011] 16 taxmann.com 382 (Delhi) was applied.

Reference be made to Flash mailer 153 Indian Aluminium company Limited v. CIT/Kolkata high court/dtd. 18-3-2016/assessment year 1997-98 where on similar facts application software was held to be a revenue expenditure.