Expenditure on Short-Lived CAD Software Eligible for 80IC Deduction

MVM Industries Vs DCIT/ACIT (ITAT Chandigarh)

CAD Software is Revenue Expenditure; Full 80IC Benefit Allowed

Assessee, eligible for deduction u/s 80IC @25%, purchased Premium CAD software worth ₹25,94,500. AO held it to be capital expenditure, allowed only 12.5% depreciation (treating it as used for <180 days), and reduced the 80IC deduction. CIT(A) upheld the view.

Before Tribunal, assessee argued that design/software tools have short useful life, require regular upgrades, and provide no enduring advantage, thus are revenue in nature.

ITAT accepted this c

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