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In the result, we answer the reference in negative, i.e. in favour of the revenue and against the assessee. The reference so made stands disposed of accordingly.

The facts of the case and the facts of Arawali Constructions Co. Ltd. (supra) are identical and therefore, in our opinion, the above decision of the Hon'ble Rajasthan High Court would be squarely applicable.

The Learned Counsel for the assessee has also relied upon the decision of Hon'ble Delhi High Court in the case of K. & Co. (supra). However, we find that in the said case the assessee has incurred the expenditure on maintenance of computers and their upgradation including software. Thus the facts in that case were altogether different because the expenditure was on upgradation of computers including software. Moreover, in the above case, Their Lordships of Delhi High Court did not admit the revenue's appeal holding that no substantial question of law arises. Thus there is no decision on merit by Their Lordships of Delhi High Court. Therefore, the above decision would be of no help to the assessee.