Dismissing the appeal of the revenue the Court held that ,in view of fact that advanced technology software become obsolete within short intervals. Expenditure incurred on software expenses is held to be revenue expenditure. (AY.2000-01, 2001-02)
CIT v. Lakshmi Vilas Bank Ltd. (2018) 258 Taxman 193/ 304 CTR 798/ 170 DTR 270 (Mad.)(HC)
S. 37(1) : Business expenditure – Capital or revenue- In view of fact that advanced technology software become obsolete within short intervals-Expenditure incurred on software expenses is held to be revenue expenditure.