TMI Blog2015 (10) TMI 1371X X X X Extracts X X X X X X X X Extracts X X X X ..... e Depreciation on computer peripherals - @ 15% or 60% - Held that: - Computer accessories and peripherals such as, printers, scanners and server etc. form an integral part of the computer system. In fact, the computer accessories and peripherals cannot be used without the computer. Consequently, as they are the part of the computer system, they are entitled to depreciation at the higher rate of 60%. See case of BSES Rajdhani Powers Ltd. [2010 (8) TMI 58 - DELHI HIGH COURT] - Decided in favour of assessee - I.T.A. No.136/Del/2013 - - - Dated:- 14-3-2014 - SHRI I.C. SUDHIR AND SHRI T.S. KAPOOR, JJ. For The Appellant : Shri V.K. Jain, C.A. For The Respondent : Ms. Nidhi Srivastava, Sr. DR. ORDER PER TS KAPOOR, AM: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment made in current year was only annual royalty payment calculated on the basis of sales which was a revenue expenditure. The Assessing Officer, however, did not agree with the contentions of the assessee and after citing various clauses of license agreement made the addition by holding as under:- Considering the different clauses of the agreement between the two parties and facts and circumstances of the case, it is hereby concluded that the assessee by acquiring the right of technology brand name, trade mark from M/s Cryobank International Inc. by virtue of License Agreement has acquired a benefit of enduring nature which will constitute acquisition of an asset and the amount of ₹ 53,98,410/- paid to the above foreign comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to be payable till the appellant company is using the name Rs. Cryobank and marks Rs. IM c) On termination of the agreement the appellant company shall not be entitled to use the name of Cryobank or any other right which the appellant company has received by way of License Agreement. d) No right property or interest is transferred in favour of the appellant company by virtue of paying the royalty and such right property or interest shall always be owned by Cyrobank International Inc. 5. It was further submitted that in the case of assessee itself for assessment year 2007-08, the similar addition made by the Assessing Officer was deleted by the Ld CIT(A). The Ld CIT(A) on the basis of submissions deleted the additions by holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the above and following the case laws cited by Ld AR I find that this expenditure is clearly in the field of revenue. In view of the above, the impugned addition of ₹ 5,64,117/- is deleted. Since the facts and circumstances of the present case is similar to the facts for the assessment year 2007-8 I find no reason to deviate from the aforesaid findings of Ld CIT(A), Delhi the impugned royalty expenses are held to be revenue in nature and accordingly the Assessing Officer is directed to delete the addition of ₹ 53,98,410/-. 6. As regards the other addition on account of excess depreciation on computer peripherals the ld CIT(A) deleted the same by relying upon the case law BSES Rajdhani Ltd., in I.T.A. No.1266/2010. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenditure. The Ld AR submitted that the facts of the case are exactly same as that of assessee and therefore it was rightly allowed by the Ld CIT(A). The Ld AR further relied upon the case law relied upon before Ld CIT(A). 11. As regards second addition the Ld AR submitted that Ld CIT(A) relying upon the case law of BSES Rajdhani Ltd. has rightly allowed the relief. 12. We have heard the rival submissions of both the parties and have gone through the material available on record. We find that as per various clauses of license agreement the assessee was to pay at the time of entering of agreement certain amounts cover equipment and training and further it was required to pay regular annual royalty on all domestic sales which was to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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