TMI Blog2014 (11) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... payment made on account of audit fee and therefore, no disallowance can be made on account of audit fee, as per the second proviso to S.40(a)(ia) – thus, the matter is remitted back to the AO for verification as to whether the assessee company is treated as an assessee in default under S.201(1) of the Act for its failure to deduct tax at source from the payment made on account of audit fee – Decided in favour of assessee. Depreciation on Xerox copiers, LCD TV, colour copier and LCD screens – Held that:- As held in Asstt. CIT V/s. Amadeus India (P) Ltd. [2001 (1) TMI 918 - ITAT DELHI] - the term ‘computer’ should be interpreted liberally, broadly and in consonance with the intent of the legislation and working of the entire system as a whole - if any assets are found to be integral parts of the computer or computer system, the same are entitled for depreciation at higher rate, as applicable to the ’computer’ – It depends on the facts of each case as to whether a particular item or asset forms integral part of the computer or computer system and this issue is required to be decided after taking into consideration the exact usage or application for such items or assets keeping in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Apex Court in the case of CIT V/s. Vinay Cements Ltd. (213 CTR 268), that the employees contribution towards Provident Fund and ESI having been paid by the assessee before the due date of filing of the return of income for the year under consideration, it was entitled to claim deduction for the same as per S.43B of the Act, read with second proviso thereto. 5. At the time of hearing before us, the learned representatives of both the sides have agreed that the issue involved in the appeal of the Revenue is squarely covered by the various decisions of the Tribunal as well as High courts. In one such decisions recently rendered on October 14, 2014 in the case of CIT V/s. Ghatge Patil Transport Ltd. (Income Tax Appeal No.1002 of 2012), Hon'ble Bombay High Court, after taking into consideration the provisions of S.2(24)(x) read with S.36(1)(va) and S.43B, held that even employees contribution to Provident Fund etc. is allowable as deduction, if the same is deposited before the due date of filing of the return of income for the relevant year. Respectfully following the said decision of the Hon'ble Bombay High Court, we uphold the impugned order of the learned CIT(A) allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If it is found on such verification that no order under S.201(1) is passed to this effect, the Assessing Officer is directed to delete the disallowance made under S.40(a)(ia) on account of audit fee. Grounds No.2 and 3 of the assessee s appeal are accordingly treated as allowed for statistical purposes. 10. The issue involved in grounds No.4 to 7 of the assessee s appeal involve a common issue relating to the disallowance made by the Assessing Officer and confirmed by the learned CIT(A) on account of depreciation on Xerox copiers, LCD TV, colour copier and LCD screens. 11. While examining the claim of the assessee for depreciation, it was found by the Assessing Officer during the course of assessment proceedings that the assessee has claimed depreciation at higher rate of 60% on xerox copiers, Samsung LCD TV, colour copier and LCD project screens of the total value of ₹ 56,83,960, treating the same as falling in the category of computer . According to the Assessing Officer, these items were not in the nature of computer but were in the nature of office equipment falling in the block of plant and machinery. He accordingly allowed depreciation thereon at the rate of 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Samiran Majumdar (supra), it was reported by the Inspector of Income Tax Department, after verifying the function of the printer and the scanner, that they ran with the help of computer and were external devices attached to the computer with the help of cables. On the basis of this report of the Inspector, the Tribunal held that the printer and scanner were integral part of the computer system, as they could not be used without the computer and accordingly depreciation at higher rate as applicable to the computer was allowed by the Tribunal on printer and scanner. In the case of ACIT V/s. GE Capital Business Process Management Services Pvt. Ltd. (ITA NO.2887/Del/2011 for assessment year 2007-08 dated 13.4.2012) it was held by the Delhi Bench of the Tribunal that computer accessories and peripherals such as printer and scanners, servers etc. form an integral part of the computer system, as the same cannot be used without the computer and consequently depreciation at higher rate of 60% is allowable on such computer accessories and peripherals. 14. It is manifest from the various judicial pronouncements cited by the learned counsel for the assessee, as discussed above, that if a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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