JUDGMENT :

DHIRAJ SINGH THAKUR, J.

1. The present appeals under section 260A of Income Tax Act, 1961 (‘the Act’) are preferred against the order dated 6th June 2017 passed by the Income Tax Appellate Tribunal, “G” Bench, Mumbai in ITA Nos. 3629/Mum./2015 & 7668/Mum./13 for the assessment years 2006-07 and 2007-08, respectively.

2. In both appeals, the following question of law has been framed, for our consideration :

“Whether on the facts and circumstances of the case and in law, the ITAT was right in allowing the capital expenditure in connection with the development of new products as revenue expenditure?”

3. Income Tax Appeal No. 634 of 2018 :

The assessee is engaged in the business of software development solution and management. The assessee fled its return of income on 31st October 2007 declaring total income at Rs.3,31,29,870/-. The Assessing Officer (‘AO’) completed the original assessment on a total income of Rs.3,78,61,610/-. Later on, the case was reopened and assessment completed under section 143(3) read with section 147 of the Act. The 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