Court held that the Tribunal was not justified in confirming the disallowance of software expenses as being relatable to capital field. Arrears of wages, Ex-gratia payment are allowable as business expenditure. Payment made to Registrar of Companies for increasing authorised capital is not allowable as revenue expenditure. (AY. 1999-2000 to 2002-03, 2004-05 to 2006-07)
Karur Vysya Bank Ltd. v. CIT (2021) 438 ITR 465 /(2022) 284 Taxman 692 (Mad.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Software expenses-Arrears of wages-Ex-gratia payment-Allowable as business expenditure-Payment made to Registrar of Companies for increasing authorised capital-Not allowable as revenue expenditure.