Purchase of application Software is revenue expenditure

Issue: Whether expenditure on acquisition of software was revenue or capital expenditure? Sections Involved:  Section 37 (1) of the Income Tax Act (Capital expenditure is not allowed as per this section) Appeal by Assessee before ITAT: (Relevant Extract)* “1. That the Order dated March 23, 2007 passed by the learned Commissioner of Income Tax (Appeals)-XV [“CIT(A)”] is erroneous and bad in law in so far as it has confirmed the additions/disallowances made in the assessment order 2. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confi...