Capital expenditure/ revenue expenditure – No reassessment in subsequent years – Reassessment quashed

Assessee-Company,engaged in the business of life insurance,filed its return of income on 29/10/2005 declaring total income at Rs.3 1.19 lakhs. The return was processed u/s. 143(1) of the Act on 30/03/2007.Later on a notice u/s 147 of the Act was issued by the AO.From the assessment records,the AO found that assessee had entered into an agreement with M/s India Infoline Ltd. to pay software services amounting to Rs.90 lakhs for information technology to be provided by it.As per the AO,same were of enduring in nature and therefore the expenditure incurred by it had to be treated as capital expen...