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2012 (12) TMI 65 - AT - Income TaxDisallowance of Depreciation on computer peripherals/accessories - held that:- Computer accessories and peripherals form an integral part of the computer system as the computer cannot be used without computer accessories and peripherals and consequently they are part of the computer system. Hence, they are also entitled to depreciation at the higher rate of 60% - there is no reason to interfere with the order of CIT(A) and accordingly, his order is uphold. Hence, ground taken by the Department for A.Y. 2006-07 is rejected. Decision in COMMISSIONER OF INCOME TAX Versus BSES YAMUNA POWERS LLD. / BSES RAJDHANI POWERS LTD. [2010 (8) TMI 58 - DELHI HIGH COURT] followed. Taxability of Advance from Customers - works contract - held that:- Income tax proceedings of one year are not binding on other year and each year is independent from the other. from terms and conditions of the Purchase Order and the Chart placed on record it is clear that the assessee is following the percentage completion of the work as closing work in progress which is shown as opening work progress in next year. The assessee is following said method/policy consistently. On execution of the contract/purchase order, the assessee is showing the income of the said contract in the respective assessment year. Therefore, the assessee is recognizing revenue upon the completion of the contract i.e. transfer of the significant risk and rewards of ownership to the customers and not on/with reference to receipt of advances as per the Accounting Policy No. 4. The said fact has not been disputed by the department. Considering the said facts and Accounting Policy followed by CIT(A) - CIT(A) has rightly observed that the results of one year cannot be disturbed by picking up and applying a method in isolation when the assessee is following the method of accounting regularly which had been accepted by the Department in the preceding assessment year and the work in progress in the preceding year has been shown as opening work in progress in the subsequent year and the revenue has been recognized on completion of the Purchase Order - order of CIT(A) is upheld and reject the ground taken by the Department.
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