Annual Software License Expenses Held Revenue in Nature – No Enduring Benefit: ITAT Mumbai

ACIT Vs BNP Paribas India Solutions Private Limited (ITAT Mumbai) Software expenses held revenue in nature – Annual licence & maintenance costs give no enduring benefit – Revenue appeal dismissed – ITAT Mumbai In ACIT vs BNP Paribas India Solutions Pvt. Ltd. (A.Y. 2017-18), the dispute was whether software expenditure of ₹28.24 crore should be treated as capital or revenue. The AO capitalised the expenses alleging enduring benefit and allowed depreciation, whereas CIT(A) treated them as revenue expenditure. The ITAT examined the break-up of software expenses shown in the table on p...