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2016 (1) TMI 707 - ITAT CHENNAIClaim of depreciation on UPS - assessee claimed at 80% whereas Commissioner of Income Tax (Appeals) allowed 60% - Held that:- No infirmity in the order passed by the Commissioner of Income Tax (Appeals) in restricting the depreciation on UPS to 60% as the UPS systems are required for operations of the computers. Hence the UPS becomes part and parcel of the computer systems once they are attached to the computers. Hence they are legible for depreciation @ 60% being the depreciation available for computers. - Decided against assessee Eligibility for deduction under section 10A - Held that:- On going through the provisions of section 10A and sub-clause 2(i)(b) and also sub-section (2)(i) (c) of section 10A, we find considerable force in the submissions of the counsel for the assessee. We are of the view that Assessing Officer and Commissioner of Income Tax (Appeals) have completely overlooked the provisions in rejecting the claim of the assessee that it is not entitled for deduction under section 10A of the Act. Thus, we restore this issue to the file of the Assessing Officer for thorough examination and decide the issue in accordance with law i.e. whether the assessee is entitled for deduction under section 10A of the Act or not.- Decided in favour of assessee for statistical purposes.
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