Sanjiv Khanna, J.

1. These 10 appeals by the assessees-Oracle India Private Limited and Oracle Software India Limited relating to Assessment Years 1994-95 to 2004-2005 raise a common substantial question of law and are, therefore, being disposed of by this decision. The substantial question of law as admitted for hearing reads:-

“Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that media cost paid for the import of a master copy of Oracle Software used for duplication and licensing is an expenditure of a capital nature and as such is not an allowable deduction?”

2. For the purpose of clarity and to notice facts, ITA No. 797/2006, which relates to Assessment Year 1995-96, was treated as a lead case but as noticed below, wherever necessary and required we have referred to facts of assessment year 1994-95.

3. The appellant-assessee incorporated on 18th January, 1993, is a subsidiary of Oracle Corporation, USA. The appellant entered into licence agreement dated 28th May, 1993 with its parent/holding company under which the appellant was granted non-exclusive non-assignable right and authority to duplica