Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
⚠️ This portal will be fully migrated on 31-July-2025 at 23:59:59
After this date, all services will be available exclusively on our new platform.
If you encounter any issues or problems while using the new portal,
please let us know
via our feedback form
, with specific details, so we can address them promptly.
Home
2010 (4) TMI 769 - AT - Income TaxDisallowance - Expenditure incurred for the training of the staff etc.- Since the staff had been recruited it was not ready for rendering services as the staff had to be trained with the systems - The assessee had not taken premises on rent and therefore installation of computer therein had not been done - Therefore the assessee was not in a position to solicit custom till the end of May 2004. The advances were received from the parent company but these were used for training the personnel and paying salaries and incidental charges necessary for setting up the business - Thus in a nutshell it is held that a business is set up when it reaches a stage where it is in a position to procure business and not before. However the expenditure becomes deductible from such stage irrespective of the date of actual receipt of the business - Therefore it is held that the business had not been set up till the end of May 2004 - Accordingly the assessee is not entitled to deduction of these expenses. Higher rate of depreciation - Computers - UPS - Held thst - As per the decision of Hon ble Delhi High Court in the case of CIT v. BSES Rajdhani Power Ltd. 2010 -TMI - 78240 - DELHI HIGH COURT in which higher rate of depreciation was allowed on printers and scanners - If peripherals such as printers scanners and servers etc. form integral part of the computer system we have no hesitation in holding that UPS is also an integral part of the computer system entitled for deduction of depreciation at the rate of 60 per cent - Tribunal held that computer accessories and peripherals such as printers scanners and server etc. form an integral part of the computer system - In fact the computer accessories and peripherals cannot be used without the computer - Consequently as they are the part of the computer system they are entitled to depreciation at the higher rate of 60 per cent.
|