1 itxa3774-09 sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.3774 OF 2009 The Commissioner of Income Tax-7 ..Appellant. V/s. M/s. Rediff.Com India Ltd. ..Respondent. Mr. Suresh Kumar for appellant. Mr. Jitendra Jain with Damodar i/b. Kango & Co. for respondent. CORAM : J.P. DEVADHAR AND R.M. SAVANT, JJ. DATED : 30TH NOVEMBER, 2010 P.C. :- 1. Two questions of law are raised in this appeal. Counsel for the revenue does not press the second question as the same is covered against the revenue by the decision of this Court in the case of CIT V/s. Geoffrey Manners and Co. Ltd. reported in [2009] 315 ITR 134 (Bom). 2. The first question raised by the revenue reads thus:- " Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in holding that the expenditure of Rs. 2 itxa3774-09 5,35,53,803/- incurred by the assessee on computer software is revenue in nature after relying on the decision of M/s. Amway India Enterprises V/s. DCIT 301 ITR (AT) 1 (Delhi) (SB) which has not been accepted by the department and without taking into cognizance the decision of the Rajasthan High Court in the case of Aravalli Construction Co. Pvt. Ltd. 259 ITR 30 ? " 3. As regards this question is concerned, counsel on both the sides agree that the decision of the Tribunal on this question be set aside and the matter be remanded back to the Assessing Officer for deciding the matter afresh. Accordingly, the order of the Tribunal so far as the first question is concerned is quashed and set aside and the matter is restored to the file of the Assessing Officer for decision afresh in accordance with law. 3. The appeal is disposed of accordingly with no order as to costs. 4. The contentions of both parties are kept open. (R.M. SAVANT, J.) (J.P. DEVADHAR, J.)