ERP Software Package Allowable As Revenue Expenditure

The functional test laid down by the court to determine the nature of the expenditure was “software facilitated the assessee’s trading operations or enabling the management to conduct the assessee’s business more efficiently or more profitably but it is not in the nature of profit making apparatus”

Case law:

1. CIT vs. Raychem RPG Ltd

2. Amway India Enterprise vs. CIT 111 ITD 112