Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 745 - AT - Income TaxDepreciation on computer software purchased separately (SAP software) - @60% OR 25% applicable to intangible assets - Held that:- As relied upon the order of the Tribunal in the case of ACIT Vs. Zydus Infrastructure P.Ltd. (2016 (8) TMI 696 - ITAT AHMEDABAD) held that licenced software are also subjected to depreciation at the rate of 60%. Tribunal also observed that even if depreciation is lowered, then there would not be any change in taxable income of the assessee, as the assessee-company is a unit eligible for deduction under section 10A of the Income Tax Act, and therefore, in either way, the entire exercise would be revenue neutral and adjudication becomes merely an academic. Claim of deduction u/s.10AA of the Act on exchange fluctuation gain - Held that:- It is undisputed that appellant realized foreign exchange on account of export from eligible unit at SEZ. Further in value terms there are two entries i.e. entry of sale on the date of export as per invoice and entry of gain / loss on account of realisation of such sale. There is no other activity of sale or services but it is on account of two different value of foreign currency for two different time frames related to one sale, hence such gain /loss is part and parcel of sale and, profit/income of the eligible unit entitled for deduction u/s.10AA of the Act. AO is directed not to reduce foreign exchange rate fluctuation gain from profits of business while computing deduction u/s.10AA
|