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 related accessories. These were held to give enduring benefit an...