Software license expenditure for carrying out routine operations is revenue in nature: ITAT Mumbai

ACIT Vs First Advantage Pvt. Ltd. (ITAT Mumbai) ITAT Mumbai held that software license expenditure incurred for carrying out the routine operations is revenue in nature. Hence, disallowing the same by treating it as capital unjustified. Thus, disallowance deleted. Facts- Assessee is a private limited company engaged in the business of employment background screening services. For the year under consideration, the assessee filed its return of income on 29/11/2017 declaring a total income of Rs. 25,01,35,460 under the normal provisions and book profit u/s. 115JB of the Act at Rs.8,10,93,284. The...