TMI Blog2016 (9) TMI 1617X X X X Extracts X X X X X X X X Extracts X X X X ..... t the higher rate of 60%. As per the provisions of Income Tax Act are considering up to Assessment Year 2002-03 computers were eligible for depreciation @ 60% from Assessment Year 2003-04, benefit of such enhanced depreciation rate has been extended also to Computer Software . In this respect our attention was drawn to note no. 7 to Appendix I as applicable from Assessment Year 2003-04 which defines Computer Software to mean any computer programme recorded on any disc, type, perforated media or other information storage device. Thus for Income Tax purposes software has to be shown under the block of assets computers including computer software . We are also of the view that Computer Software cannot work in isolation and also wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the extent of ₹ 13,66,773/- and the reasons assigned for doing so are wrong and contrary to the provisions of the Income Tax Act, 1961, and the Rules made there under. 2. The only ground raised by the assessee is against restricting the claim of depreciation on computer softwares forming part of the block of assets. 3. Ld. AR appearing on behalf of the assessee submitted that the assessee company is engaged in collateral management i.e; controlling and mitigating risk for majority of the agro and industrial commodities, procurement of food grains on behalf of FCI. It was submitted by Ld. AR that with effect from 2003-04, computer software has been subsequently included in the table of depreciation rate given in Appendix-2 Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ACIT [2009] 30 SOT 284 [Delhi] 4. On the other hand Ld. DR relied upon the abovementioned order and also relied upon the order passed by lower authorities. 5. We have heard the rival submissions and also perused the material placed on record before us. And after analysing the order passed by the Ld. CIT(A) we are of the considered view that Software consists of the programs and application that run on computers, and computer including computer software on which rate of depreciation has been prescribed as 60%. And the said rates are effective from Assessment Year 2003-04 wherein the Computer Software has already been included in the category of Computer for the purpose of allowing depreciation at the higher rate of 60%. As per t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en defined in the Act, but in Note-7 to Appendix-I to the Income-tax Rules, it has been explained to include computer programme recorded on any disc, tape, perforated media or other information storage device. Therefore computer software (whether in canned form or uncanned form) is goods and a tangible asset by itself. ii) DCIT Vs. Datacraft India Ltd. 133 TIJ 377 (SB) (Mum) wherein the Tribunal observed that the definition of computer should not be restricted to the Central Processing Unit of computer, but should also extend to all the input and output devices which support computer in the receipt of input and outflow of output to and from computer. In view of the broader definition given to computers, routers and switches , which form ..... X X X X Extracts X X X X X X X X Extracts X X X X
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