TMI Blog2014 (3) TMI 540X X X X Extracts X X X X X X X X Extracts X X X X ..... n computers and computer software - The depreciation rates as mentioned cannot be extended to the other equipments where computer is used. Whether printer, scanner and server are integral part of computer or not – Held that:- The decision in CIT vs. BSES Yamuna Power [2010 (8) TMI 58 - DELHI HIGH COURT] followed - computer accessories and peripherals such as printer, scanner and server etc. forma an integral part of computer system - the computer accessories and peripherals cannot be used without the computer – they are the part of the computer system and they are entitled to depreciation at the higher rate of 60% - the above analogy cannot be extended to TV sets used in the video conferencing equipments. The TV sets used by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her equipments where computer is used. 3. In this case AO noted that the assessee has claimed depreciation @60% of video conferencing equipments which included the following components. 3.1 From the above, AO noted that the above items are mainly plasma TV and other TV sets which can work even without computer. AO was of the opinion that the process of video conferencing may involve the help of computer system, but it cannot be termed as part and parcel of the computer as such. AO further observed that for the sake of discussion if the assessee company's submissions are acceptable then by that justification, all the big input and output devices, processing units, storage units like MRI scanning machines, coordinate measuring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, it has been defined by section 2(1)(t) of the Information Technology Act, 2000. As per the said Act, computer means any electronic, magnet, optical or other high speed data processing device or system which performs logical, arithmetic and memory functions by manipulation of electronics or magnetic or optical impulses and includes all input - output processing, storage, computer, software or communication facilities which are connected or related to the computer in a computer system or computer net work. From the above definition, it is clear that the communication facilities which are connected or related to the computer are also a part of computer. The Video Conference System is a set of interactive telecommunication technology ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciation @60%as per the provisions of the I T Act. Therefore, the AO is directed to allow depreciation on the Video Conference System at the rate of 60%. 5. Against the above order the Revenue is in appeal before us. 6. We have heard both the counsel and perused the records. 6.1 In our considered opinion the process of video conferencing may involve the help of computer system, but the entire video conferencing system cannot be the termed as part and parcel of the computer as such. Income Tax Rules specifically provide depreciation @ 60% only on computers and computer software. The depreciation rates as mentioned above cannot be extended to the other equipments where computer is used. We agree with the AO that if the assessee com ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
