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2020 (7) TMI 305 - AT - Income TaxDepreciation on ‘Content Management Software’ (‘CM Software’) u/s 32 @12.5% - Disallowance of depreciation claimed on ‘webmaster software for which the appellant failed to satisfy the test of ownership for claiming depreciation - alternatively, the expenditure be allowed as Revenue expenditure u/s 37(1) - HELD THAT:- Assessee has given the description of the software, its functionality which was also submitted before the CIT(A) - From the details and the submissions it is the assessee’s contention that the CMS Software has been developed by it, owned by it and it is used for the purpose of business by updating and managing the Income Tax Act and the other Acts and Rules published by assessee each year. The contention of the assessee of having owning the CMS software by it has not been controverted by the Revenue - incurring of expenditure on its development has also not been disputed by the Revenue. Before us the Ld AR has also pointed out the the software apart from being mainly used by the assessee for its own business is also being used by it to upgrade the website of the Income tax Department. These contentions of the Ld AR has not been controverted by Revenue by placing any material on record. Claim of depreciation made by the assessee in the subsequent year has not been disturbed by the Revenue. Thus we are of the view that the AO was not justified in denying the claim of depreciation u/s 32 - alternate claim of allowing the entire expenditure u/s 37(1) is rendered academic and therefore, not adjudicated. - Decided in favour of assessee.
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