Website is intangible Asset and not software

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INCOME TAX APPELLATE TRIBUNAL, DELHI

I.T. A. No.3916/Del/2009 – Assessment Year : 2004-05

Makemytrip (India) Pvt. Ltd. Vs. Deputy Commissioner of Income-tax

Assessee’s claim that travel website should be treated as software (and hence website development cost is eligible for 60% depreciation) is not justified. By approaching travel website of assessee, customers/people can approach assessee and conduct business; therefore, website as such cannot be treated as software; it would fall under definition of intangible asset on which depreciation @ 25% is allowable.