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2023 (1) TMI 1291 - ITAT DELHIDepreciation allowance on Cisco Phone - items functionally dependent on computers - 15% or 60% - AO treated the Cisco Phone as part of plant and machinery and did not allow the depreciation rate of 60% claimed by the assessee applicable for computers - HELD THAT:- As the identical issue was considered in the case of M/s. Cisco Systems Capital (India) Pvt. Ltd. 2014 (12) TMI 890 - ITAT BANGALORE] as held items which are, functional dependent on computers are definitely part of computer and the items with independent existence may not be computers but wherever it is found that the device is not used independent of the computer system and the purpose of audio visual conferencing and video streaming, the same shall be treated as computers and wherever it is used independently for any other purpose it shall be treated as plant and machinery. The AO, shall, thus allow depreciation at the rate of 60% on the equipment which could be classified as computer and at the rate of 15% on the equipment which could be classified as plant and machinery. This issue is accordingly set aside to the file of the AO for re-adjudication Accordingly, in the interest of justice, we remit the file to the AO. AO is directed to follow the ratio laid down by the ITAT in the aforesaid order. Assessee appeal partly allowed for statistical purposes.
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