.1. On an application under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following

.question for our opinion: “Whether, on the facts and in the circumstances of the case, the Tribunal was justified in treating the expenditure in the acquisition of software of Rs. 1,38,360 as of revenue nature ?”

2. Theassessee-company had acquired computer software which had cost Rs. 1,3 8,360 which the assessee claimed as revenue expenditure. However, the Assessing Officer had taken it as a capital expenditure and allowed depreciation as per rules. In appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals) has taken a view that the expenditure incurred on technical know-how is a revenue expenditure. In appeal before the Tribunal, the Tribunal decided the issue against the Revenue relying upon the decisions of the Delhi and Bombay High Courts and confirmed the view taken by the Commissioner of Income-tax (Appeals).

3. None appeared on behalf of the assessee. Heard learned counsel for the Revenue.

4. Learned counsel for the Revenue, Mr. Mathur, submits that the computer software is a programme and computer software used a