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2017 (2) TMI 1086 - AT - Income TaxDepreciation on computer systems on the WDV @60% - display system - AO has reduced the depreciation rate claimed at 60% to 15% - Held that:- If the depreciation was allowed at 60%, categorising such equipment as ‘computer systems’ in earlier years on 2008-09 and 2009-10, AO cannot re-classify them in the ‘block of assets’ concept in a later year. He is bound to grant depreciation at 60% only. Apart from that even though the assets involved is a display system, which can be categorised as a ‘computer monitor’ as the results are projected on the big screen in the race course ground. These are part of the display system controlled by computers. In view of that, we find merit in assessee’s contentions. Following the precedence on the issue, as relied on by assessee in various cases, we uphold assessee’s contentions that the display system was entitled for depreciation at 60%. If at all Revenue want to examine the Rate of depreciation, the same could have been examined in AY. 2008-09 i.e., when the said asset was purchased and included in the block of the assets. Since assessee was already getting depreciation at 60%, on the principles of consistency depreciation 60% is to be allowed in the impugned assessment years as well. In view of that, AO is directed to grant depreciation at 60% on the WDV as claimed. Grounds of assessee are allowed.
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