Expenditure towards development of software never came into existence is revenue in nature

PCIT Vs Trigent Software Limited (Bombay High Court) Bombay High Court held that expenditure towards development of a software which never came into existence is revenue in nature as it doesn’t give rise to any new asset. Facts- The assessee is engaged in the business of software development solution and management. AO found that the assessee had debited to the profit and loss account an amount of Rs.7.09 crores under the head “Exceptional Items”, which expenditure, the AO held after investigation, was incurred in connection with the development of a new product. The assessee had treated...