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2015 (10) TMI 2013 - AT - Income TaxRevision under section 263 - the assessee has claimed depreciation at 60% on computer equipments, UPS and SAP instead of depreciation at the rate of 15% on computer peripheral and at the rate of 25% on SAP licence, and and that the assessee has claimed additional depreciation of ₹ 23.35 lakhs on fire safety equipments, weigh scale, printer, storage tank etc - Held that:- The Hon'ble Delhi High Court in the case of BSES Yamuna Power ltd. (2012 (12) TMI 118 - ITAT DELHI) has held that depreciation at the rate of 60% will be admissible on computer peripherals. Prior to this decision, there are large number of orders at the end of the ITAT, and the ITAT is unanimous in its approach on this issue. Thus, a possible view can be taken by the AO with regard to the admissibility of depreciation on UPS, scanner etc. at the rate of 60%. It is one of the possible views, which the AO has taken. As far as the depreciation at the rate of 60% allowed to the assessee on SAP licence is concerned, we are of the view that the AO has investigated the issue and took an opinion that it might have not been reflected specifically in the assessment order. If the ld.Commissioner has a different opinion on this issue, then it would become a debatable one. According to the assessee, in various judgements, it has been held that the software expense is to be allowed as revenue expenditure. Considering the nature of its debatable-ness, we are of the view that the assessment order cannot be branded as an erroneous order on this issue. The assessee as an entity ought to be engaged in the manufacturing activity. It ought to have installed plant & machinery. It is not necessary that new machinery should be part of the manufacturing activity. The additional deprecation will be admissible. This also to be termed as debatable issue and the ld.AO has taken a view of this aspect, which could not be subject to action under section 263. The AO has invited the explanation of the assessee, gone through the details submitted by it, and thereafter, allowed the depreciation including additional depreciation as per law. His view may not get approval from the point of view of the ld.Commissioner, but, the opinion of the AO is also a possible view, and therefore, no action under section 263 can be justified. On due consideration of these facts and circumstances, we allow the appeal of the assessee, and quash the order passed by the ld.Commissioner under section 263 of the Act. - Decided in favour of assessee.
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