Software Expenses on Upgradation allowed as Revenue Expense

Addl. CIT Vs TV Today Network Ltd. (ITAT Delhi) The issue under consideration is whether the software expenses are allowed as revenue expenditure? the assessee company was engaged in the business of broadcasting, telecasting, relaying transmitting, distributing audio, video and other programmes of software for television, radio and other media. During the assessment AO has disallowed software expenses by treating it as a capital expenditure. The assessee explained that these are the upgradation or purchase of the application software and revenue expenditure in nature because there is no enduri...