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2018 (8) TMI 2112 - AT - Income TaxDisallowance u/s 14A - computation of deduction - AO observed that assessee has not properly worked out the disallowance therefore the assessee was asked to explain why not the disallowance should be worked out as per section 14A - HELD THAT:- As noticed that as on 31st March, 2011, the assessee was having its own fund of Rs. 158.57 crores (share capital of Rs. 69.44 crores + reserves of Rs. 89.14 crores). It is explained that borrowed funds were utilized for construction of hospital building and the interest amount was capitalized as evident from rule 19 of annual accounts - identical issue on similar facts in the case of the assessee, has been decided for assessment year 2010-11 on 08.08.2017 in favour of the assessse. DR was fair enough not to controvert these facts and findings. Accordingly, the appeal of the revenue on this issue is dismissed. Depreciation on system software of the computer - @ 60% or 25% - as per AO application software are not integral part of the computer and held that the application software is intangible assets and they are eligible for depreciation u/s. 32 of the act @ 25% - HELD THAT:- Special Bench in the case of Datacraft India Ltd [2010 (7) TMI 642 - ITAT, MUMBAI] held that any device when they are used along with computer and when their functions are integrated with the computer comes within the ambit of the expression computer. Decided against revenue.
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