Assessee was engaged in business of software development. Assessee made payment towards acquiring electronic design automation (EDA) software license and claimed same as revenue expenses. Assessing Officer disallowed same concluding that expenditure was capital in nature and, therefore, only depreciation at rate of 60 per cent would be allowed and not entire expenditure. Tribunal held that US parent company of assessee had acquired license to use EDA tools from vendors and right of assessee to use same and only billing done on assessee on basis of actual use of software by assessee. As the assessee had acquired no right or interest whatsoever in EDA tools and had only a right to use software, accordingly allowable as revenue expenditure. (AY. 2008-09)