Tribunal held that, license fee, connectivity charges and co-ordination charges were paid for the limited right to use of software and there was no vesting of enduring benefit or irrevocable transfer of rights. Thus, the charges paid are revenue in nature and allowable. (AY. 2010-11)
DCIT v. G.E. Capital Business Process Management Services Pvt. Ltd. (2017) 51 CCH 158 / 63 ITR 337 (Delhi)(Trib.)
S. 37(1) : Business expenditure–Capital or revenue-Software-License fee connectivity charges and coordination charges is allowable as revenue expenditure