ITAT allows depreciation on expense for ERP software named WFX-ERP-II

Indo British Garments P. Ltd. Vs ACIT (ITAT Delhi) The solitary issue in this appeal is that the assessee has capitalized the said expenses in their financial statements and treated the same as royalty and claimed the same as revenue expenditure in the computation of income. The AO held that since the assessee itself has capitalized the said expenses in its financial statements and disallowed revenue expenditure claimed. The facts revealed that the assessee entered into a software license agreement with World Fashion Exchange India Pvt. Ltd. for ERP software named WFX-ERP-II and claimed that s...