Annual Software Renewal Costs Not Capital in Nature: ITAT Ahmedabad

Unimed Technologies Limited Vs ACIT (ITAT Ahmedabad)

Core Issue:-Whether expenditure of ₹31,96,245/- incurred on software licenses and renewals is capital in nature or allowable as revenue expenditure under Section 37(1) of the Income-tax Act, 1961?

Brief Facts: 

1. The assessee debited ₹31,96,245/- under “software expenses” in its profit & loss account.

2. The Assessing Officer (AO) examined the expenditure and concluded:

• The invoices included tangible items such as rugged computers, barcode scanners, printers, and re

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