In The Case Of Cit v. Southern Roadways Limited[[1]]In Support Of Its View

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH ATHYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAAND THE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A. No.189 of 2013 DATE: 03.07.2013 Between: Commissioner of Income Tax-II,Hyderabad. … Appellant And M/s. Euroflex Transmissions (I) Pvt., Ltd.,Hyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A. No.189 of 2013 JUDGMENT:(Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred against the judgment and order,dated 29.10.2010, of the learned Income Tax Appellate Tribunal, Hyderabad,in relation to the assessment year 2006-07 on the following suggestedquestion of law. “Whether on the facts and in the circumstances of the case,the Appellate Tribunal is justified in holding that the amount incurredfor upgradation of existing software and implementation in correlationwith ERP Package should be allowed to be deducted as revenueexpenditure,, in spite of enduring advantage conferred on theassessee in the process of such upgradation?” We have gone through the impugned judgment and order of the learnedTribunal and we have heard the learned counsel for the appellant. Thelearned Tribunal has held that the expenditure of the software application isrevenue expenditure and it followed the judgment of the Madras High Court in the case of CIT vs. Southern Roadways Limited[[1]]in support of its view. We are of the view that the learned Tribunal has held correctly in relyingon the decision of the Madras High Court. Therefore, we see no reason tointerfere with the impugned judgment and order of the learned Tribunal. The appeal is accordingly dismissed. _____________________ K.J. SENGUPTA, CJ ______________ G. ROHINI, J ES [1]304 ITR 84 (MDS)