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2018 (7) TMI 288 - AT - Income TaxDepreciation on computer software purchased separately (SAP Software) - @ 60% OR 25% - Held that:- The computer software so installed albeit separately is a long term software having regard to the special needs of the assessee company - the issue is no longer res integra and is covered in favour of the assessee by the decision of the co-ordinate bench of the Tribunal ACIT vs. Zydus Infrastructure (P.) Ltd. [2016 (8) TMI 696 - ITAT AHMEDABAD] as held assessee is eligible for accelerated depreciation year after-year and therefore, higher depreciation in initial years would ultimately lead to lower depreciation in the subsequent years and accordingly, over a period of time, the entire exercise would be revenue neutral. Higher or lower depreciation will not lead to any change in taxable income of the 10-A unit, the entire issue is academic. - licensed software are subject to depreciation @ 60% - Decided against revenue Eligibility of foreign exchange fluctuation gains for the purposes of exemption u/s 10A - Held that:- The issue is also settled in favour of the assessee by long line of judicial precedents where a consistent view has been taken that foreign exchange gains arising out of the fluctuation in the rate of foreign exchange cannot be divested from the export business of the assessee. Once export is made, the foreign exchange gains/loss may occur due to variety of reasons at the time of remission of export sale proceeds. Foreign exchange fluctuation gains required to be taken as integral part of the business profits derived from exports. What is required to be determined is ‘profits of the business of the undertaking’ which is ostensibly wider than ‘profits & gains derived by the undertaking’. In short, the profits derived from export have been equated when business profits of the undertaking in view of the formula provided in Section 10AA(7) of the Act - Decided against revenue
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