Assessee is  engaged in business of software development solution and management. It incurred expenditure in connection with development of a new software product and treated expenditure as a part of capital work-in-progress for assessment years 2004-05 to 2007-08. However, new product never came into existence and development of this software was abandoned and assessee then claimed whole capital work in progress as revenue expenditure in assessment years 2006-07 and 2007-08. Assessing Officer held that expenditure incurred was capital in nature and disallowed same.  High Court held that since no new asset came into existence which would be of an enduring benefit to assessee, expenditure could only be said to be revenue in nature. SLP of Revenue is dismissed.  (AY. 2006-07,  2007-08)