J U D G M E N T

(Delivered by M. DURAISWAMY, J)

This appeal filed by the assessee under Section 260A of the Income Tax Act, 1961 ('the Act' for brevity), is directed against the order dated 02.05.2013 passed by the Income Tax Appellate Tribunal, Madras “B” Bench, Chennai ('the Tribunal' for brevity) in I.T.A.No. 2164/Mds/ 2010 for the Assessment Year 2006-07. The above appeal was admitted on 09.12.2015 on the following Substantial Questions of Law for consideration:

“1)Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the expenditure incurred towards temporary structure is capital in nature and not allowable as revenue expenditure?

2)Whether on the facts of the case, the Tribunal was right in law in holding that the tax is deductible on the gross royalty payments made to Microsoft Corporation and not on the net amount payable after considering the sales return?

3)Whether tax is deductible in respect of price of software returned to Microsoft even before the due date for payment of the price in view of CBDT Circular No.790 dated 20.04.2000?

4)Whether on the facts and in the circumstances of the case, the Tribunal was right in law in h