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2018 (9) TMI 406 - AT - Income TaxDepreciation claimed at the rate of 60% on design software comprising of drawings and designs, engineering and development of special purpose custom built hydraulic cylinders and excavator equipments - Held that:- The claim of depreciation was on software in the nature of design and assembly drawings of hydraulic cylinders, bill of materials and other components. Depreciation was claimed by the assessee on the opening written down value of this asset. Acquisition of the said asset was in financial year 2011-12 relevant to assessment year 2012-2013. The question whether such asset was eligible for depreciation available to "computer and computer softwares" had come up before this Tribunal in assessee’s own case for assessment year 2012-2013 wherein held Once the Ld.CIT(A) has himself held the purchase made by the assessee company is a design software, we wonder as to how it cannot be treated as a computer software. The design software embedded in CD containing the design has to be necessarily treated as computer software and the same is clarified in Note 7 of the new Appendix-1 of the Rules which states that “computer software” means any computer program recorded on any disk, tape, perforated media or other information storage device. Further as per the Rule, the rates prescribed for computer software is 60% for the relevant assessment year - Decided in favour of assessee.
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