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2017 (9) TMI 1095 - AT - Income TaxDeduction u/s 10A - reducing the link charges from "the export turnover" by the virtue of clause (iv) of Explanation 2 of Section 10A without making the similar adjustment from" the total turnover" - providing Business Process Outsourcing (BPO) services and export of ITES - Held that:- Identical issue in favour of the assessee by following the decision rendered by ITAT, Delhi Bench in case of DCIT vs. Binary Sematics [2007 (3) TMI 306 - ITAT DELHI-D ] wherein it is held that, “the total turnover in the denominator and export turnover in the numerator have to be read in the same manner and directed the AO to exclude these items from the total turnover also while computing the deduction u/s 10A of the Act.” Since this issue has already attained finality the link charges from the export turnover are to be reduced while making similar adjustment from the total turnover as well as export turnover. So, following the decision rendered by the coordinate Bench in the assessee’s own case for AY 2004-05 Depreciation of networking equipments / computer peripherals, covered under the Computers - 60% OR 25% - Held that:- Following the decision rendered by Hon’ble jurisdictional High Court in case of CIT vs. BSES Rajdhani Powers Ltd.(2010 (8) TMI 58 - DELHI HIGH COURT) we are of the considered view that the assessee is entitled for depreciation of computer / integral equipments @ 60% as against 25% allowed by the AO. Depreciation on electrical installation - @ 25% applicable on the plant and machinery - AO allowed the depreciation @ 15% on the electrical installation used for more than 180 days and @ 7.5% for the installation used less than 180 days - Held that:- Hon’ble Supreme Court in case cited as CIT vs. Taj Mahal Hotel (1971 (8) TMI 2 - SUPREME Court) and Anand Theatres (2000 (5) TMI 4 - SUPREME Court) held that electrical installations are to be regarded as plant and machinery for the purposes of depreciation in the scheme of section 32 of the Act. So, when electrical installations are treated as plant the depreciation has to be allowed @ 25% as per provisions contained u/s 32 of the Act. Deduction u/s 10A is required to be taken before setting off brought forward losses and unabsorbed depreciation. See CIT vs. Yogokawa India Ltd. [2011 (8) TMI 845 - Karnataka High Court ]
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