The Tribunal held that the payments were made for subscription services of software. There was no acquisition of the software. The ownership remained with the vendor only. Hence, the expense was of revenue nature and allowed as deduction. Telephone and internet expenses allowable as deduction. (AY. 2015-16)
Bigfoot Retail Solution Pvt. Ltd v. ACIT (2022)97 ITR 73 (SN)(Delhi)(Trib)
S. 37(1) : Business expenditure-Capital or revenue-Payment for subscription services of software-No acquisition of software-Telephone and internet expenses-Allowable as revenue expenditure.