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TMI Blog2013 (6) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... - Printers and routers - electrical equipments or energy savings devices - CIT(A) deleted the addition - Held that:- As decided in DCIT Vs. Datacraft India Ltd. (2010 (7) TMI 642 - ITAT, MUMBAI) it was held that the "router" and "switches" can be classified as computer hardware when they are used along with computer and when there functions are integrated with a computer. It was concluded that in such a situation the routers and switches are to be included in back of computers for the purposes of demanding the rate of depreciation. Also see ITO Vs. Samiran Majumdar (2005 (8) TMI 293 - ITAT CALCUTTA-B) wherein the issue was whether printers and scanners being integral part of computer system can be treated as computer for the purpose of all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenditure made by the assessee considering the fact that such claim was capital in nature." 1.1 In respect of above two grounds, the AO has noted by order under Section 143(3) dated 21.12.2011 that the assessee is a co-operative bank and claimed an expenditure of Rs.10,65,097/- towards software purchases. A show cause was issued to the assessee that it was eligible for depreciation @ 60% on the software purchases. The AO has reproduced Appendix-1, i.e., Table of rate of depreciation and informed that the computers including computers software are eligible for 60% depreciation as per IT Rules. On the other hand, it was submitted that the software which was purchased were nothing but simple upgradation of the existing computer. The AO w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te a degree of endurability and permanence to the technical know how at any particular stage in fast changing area of science." 1.4 Respectfully following the above decision we hereby affirm the findings of learned CIT(A). This ground of the Revenue is hereby dismissed. 2. Ground No.3 4 are reproduced below:- "3. On the facts and in the circumstances of the case and in law the CIT(A) has erred in deleting the addition made by the assessing officer of Rs.2,12,520/- by holding that the AO had wrongly categorized the items purchased viz. Printers and routers as electrical equipments instead of energy savings devices. 4. The learned CIT(A) ought to upheld the addition made by the AO as the concerned items viz. printers cannot be class ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d when there functions are integrated with a computer. It was concluded that in such a situation the routers and switches are to be included in back of computers for the purposes of demanding the rate of depreciation. An another decision on this issue is pronounced in the case of ITO Vs. Samiran Majumdar (2006) 98 ITD 119 (Kol), wherein the issue was whether printers and scanners being integral part of computer system can be treated as computer for the purpose of allowing higher rate of appreciation. The respected co- ordinate Bench has answered in affirmative. Respectfully following these decisions, we hereby dismiss this ground of the revenue. 3. Ground No.5 and 6 are reproduced below: "On the facts and in the circumstances of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee co-operative bank has distributed gifts, mementos, school bags, etc to the children of its members. Now, the question is that such distribution of gifts was allowable as business expenditure was an identical issue decided by ITAT Ahmedabad Bench in the case of ACIT Vs. The Gujarat State Co-operative Bank Ltd. in ITA Nos.1899/Ahd/2012, A.Y:2009-10, dated 31.01.2013, wherein the order of Hon'ble Jurisdictional High Court in the case of Karajan Co-operative Cotton Sales (199 ITR 17) followed and expenditure was allowed. The relevant portion of the High Court decision was reproduced, a paragraph is reproduced below:- "The stand of the revenue that expenditure incurred by the society on giving presents to as own members would amount to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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