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2021 (5) TMI 628 - AT - Income TaxDepreciation on mobile phones - @15% OR 60% - assessee is a company engaged in the business of purchase and sale of air-time for mobile phones - HELD THAT:- This issue has been decided by the solitary decision in the case of Federal Bank Ltd. Vs. ACIT [2010 (11) TMI 115 - KERALA HIGH COURT] wherein it has been held that mobile phones are not computers and, therefore, depreciation on these mobile phones shall be allowed at the general rate of depreciation on plant and machinery @ 15%. This being the solitary decision on the issue and is binding on us, respectfully following that we uphold that depreciation on mobile phones is allowable @ 15% and not @ 60%. There are smart phones which do function equivalent to the computers or much more than a computer, if the functionality of a mobile phone are shown to be more than a communication equipment, perhaps, it may qualify as a computer. However, as no such information is available in the present case, we dismiss the appeal of the assessee.
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