Indian Kanoon - Search engine for Indian Law

We find that on the facts of the case as stated in the assessment order, the AO has correctly held this amount to be capital in nature and has allowed depreciation thereon. We are of the view that the AO has correctly treated the software expenditure as capital in nature, as it gave enduring benefit. It may be noted that from assessment year 2003-04, 'computer software' has been specially included in the depreciation table, on which depreciation is to be allowed. Hence, this objection of the assessee is rejected.