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2015 (11) TMI 1897 - AT - Income TaxDepreciation at 60% on telecom/computer equipment - 'whether telecom/computer equipment' cannot be classified as 'computer including computer software' - HELD THAT:- This issue is covered in respondent assessee's own case for the asst. year 2008-09 [2014 (9) TMI 45 - ITAT BANGALORE] held that a computer system would encompass a collection of devices including input and output support devices that perform functions including, but not limited to, logic, arithmetic, data storage and retrieval communication and control. CIT(A) has not erred in allowing the depreciation at 60% on telecom/computer equipment Disallowance of deduction u/s 10A - assessee is not engaged in manufacturing and export of any article or thing or computer software as required for the purpose of computation of deduction u/s 10A - CIT(A) deleted addition - HELD THAT:- The issue is covered by the earlier order of this Hon'ble Tribunal in the assessee's own case for the assessment year 2008-09 [2014 (9) TMI 45 - ITAT BANGALORE] wherein as seen that the assessee satisfies the twin conditions of export of computer software and repatriation of exports proceeds in convertible foreign exchange as prescribed in section 10A of the Act. We, therefore, concur with the finding of the learned CIT (A) that the assessee is entitled for deduction u/s.10A. Disallowance of deduction u/s 80JJAA - assessee is not involved in telecom services and such services cannot be termed as IT enabled services - CIT(A) deleted addition - HELD THAT:- As decided in assessee own case as the facts of the assessee in the case on hand are similar to the facts of the above cited case of Texas Instruments India P. Ltd. [2006 (12) TMI 405 - ITAT BANGALORE] deduction u/s.80JJAA of the Act is allowed on the basis of the following facts :- i) The business of the assessee falls within the definition of the term "industrial undertaking"; ii) The assessee is engaged in providing Information Technology enabled services (computer software); iii) The assessee has claimed deduction of only those payments made to 'workmen' who are not employed in supervisory capacity. In view of the above, we uphold the decision of the learned CIT (A) in allowing the assessee deduction u/s.80JJAA of the Act. Accordingly, the ground raised at S.No.3 by revenue is dismissed." Disallowance of deduction u/s 35D - expenditure incurred on stamp duty increases the authorized share capital and is not an item of expenditure expressly allowable u/s 35D - CIT(A) deleted addition - HELD THAT:- This ground of appeal is restored to the file of AO with a direction to verify whether as a result of this expenditure, the share capital is increased or not. In case share capital is increased to treat the same as capital expenditure and if not, the share capital is increased to treat as Revenue expenditure.
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