Software Licences Aren’t Capital Assets: ITAT Allows ₹37.87 Crore Deduction to BNP Paribas

BNP Paribas India Solutions Private Limited Vs ACIT (ITAT Mumbai) Software Licences Aren’t Capital Assets: ITAT Allows ₹37.87 Crore Deduction to BNP Paribas The Mumbai ITAT held that expenditure incurred on software licences, database access, support services and periodic upgrades is allowable as revenue expenditure, and not capital expenditure, even where the amounts involved are substantial. The Revenue had treated software expenses incurred by BNP Paribas India Solutions Pvt. Ltd. as capital in nature on the ground that they provided an enduring benefit and formed part of the company’...