Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (4) TMI 769 - AT - Income TaxDisallowance - Expenditure incurred for the training of the staff etc.- Since, the staff had been recruited, it was not ready for rendering services as the staff had to be trained with the systems - The assessee had not taken premises on rent and, therefore, installation of computer therein had not been done - Therefore, the assessee was not in a position to solicit custom till the end of May, 2004. The advances were received from the parent company but these were used for training the personnel and paying salaries and incidental charges, necessary for setting up the business - Thus, in a nutshell, it is held that a business is set up when it reaches a stage where it is in a position to procure business and not before. However, the expenditure becomes deductible from such stage irrespective of the date of actual receipt of the business - Therefore, it is held that the business had not been set up till the end of May, 2004 - Accordingly, the assessee is not entitled to deduction of these expenses. Higher rate of depreciation - Computers - UPS - Held thst:- As per the decision of Hon’ble Delhi High Court in the case of CIT v. BSES Rajdhani Power Ltd. [2010 -TMI - 78240 - DELHI HIGH COURT],in which higher rate of depreciation was allowed on printers and scanners - If peripherals such as printers, scanners and servers etc. form integral part of the computer system, we have no hesitation in holding that UPS is also an integral part of the computer system, entitled for deduction of depreciation at the rate of 60 per cent - Tribunal held that computer accessories and peripherals such as, printers, scanners and server etc. form an integral part of the computer system - In fact, the computer accessories and peripherals cannot be used without the computer - Consequently, as they are the part of the computer system, they are entitled to depreciation at the higher rate of 60 per cent.
|