Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 1182 - AT - Income TaxDepreciation on software ERP SAP - @ 60% OR 25% - AO held that deprecation at the rate of 60% is allowable only on computers and software embedded in such computers which are part and parcel and are inseparable, therefore, according to the AO assessee has acquired only the license and hence, it is eligible for depreciation at the rate of 25% applicable to intangible assets - HELD THAT:- The issue is squarely covered in favour of the assessee by the decision of Computer Age Management Services (P.) Ltd [2019 (7) TMI 1153 - MADRAS HIGH COURT] wherein depreciation held that software lincense acquired by the assessee was in nature of application software and is eligible for deprecation at the rate of 60%. As concluded if a particular article would fall within the description by the force of the words used, it is impermissible to ignore the word 'description' and going by the usage of the equipment purchased by the assessee, a decision has to be arrived at. We find that there is no error in the decision arrived at by the Tribunal by taking note of the specific entry in contra distinction with the general entry. Therefore, the first substantial question of law has to be necessarily answered against the Revenue.
|