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2023 (2) TMI 590 - AT - Income TaxDepreciation on the computer software - @ 60% OR 2% treated as intangible asset - HELD THAT:- Hon’ble High Court of Madras ,in the case of Computer Age Management Services [2019 (7) TMI 1153 - MADRAS HIGH COURT] has categorically held that items listed in Appendix I , prescribing rates of depreciation for different assets under the Act, have to be literally interpreted since the entry is in a taxing statute - since computer software has been defined in Appendix as any computer program recorded on disc, tape or other information storage device, it has to be identified accordingly and the description could not be ignored. Therefore irrespective of the usage of the software, the Hon’ble high court held that as long as it fell within the definition provided in the appendix it qualified as computer software for enhanced rate of depreciation of 60%. In the case of Voltamp Transformers Ltd. (2013 (3) TMI 804 - ITAT AHMEDABAD] has also categorically held that Income Tax Rules providing for rate of depreciation makes no distinction between the system software and application software while prescribing 60% depreciation thereon. Therefore, the distinction pointed out by the ld.DR that software of the assessee was utility software and such softwares qualify as intangible assets for the purposes of rate of depreciation, we hold is of no relevance. No reason to interfere in the order of the ld.CIT(A) upholding the claim of depreciation at the rate of 60%. The ground of appeal of the Revenue is rejected.
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