Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (3) TMI 540 - AT - Income TaxDisallowance of extra depreciation – Claim made on video conferencing equipment - Whether the CIT(A) has erred in deleting the on account of disallowance of extra deprecation claimed on video conferencing equipments ignoring the fact only computer and computer software will be entitled for depreciation @ 60% and the same cannot be extended to the other equipments where computer is used – Held that:- The process of video conferencing may involve the help of computer system, but the entire video conferencing system cannot be the termed as part and parcel of the computer as such - Income Tax Rules specifically provide depreciation @ 60% only on computers and computer software - The depreciation rates as mentioned cannot be extended to the other equipments where computer is used. Whether printer, scanner and server are integral part of computer or not – Held that:- The decision in CIT vs. BSES Yamuna Power [2010 (8) TMI 58 - DELHI HIGH COURT] followed - computer accessories and peripherals such as printer, scanner and server etc. forma an integral part of computer system - the computer accessories and peripherals cannot be used without the computer – they are the part of the computer system and they are entitled to depreciation at the higher rate of 60% - the above analogy cannot be extended to TV sets used in the video conferencing equipments. The TV sets used by the assessee cannot be a part of the computer system - The TV sets can function independently - As such they cannot be allowed depreciation @ 60% as applicable to computers – thus, in the list of the video conferencing equipments as mentioned in the AO's order, the TV sets cannot be allowed depreciation as per computer – thus, the order fo the CIT(A) modified and the AO is directed to allow depreciation @ 60% on other items mentioned in the list except TV sets - The other items mentioned in the list except TV sets can be considered a part of the computer system – Decided partly in favour of Revenue.
|