TMI Blog2015 (9) TMI 1425X X X X Extracts X X X X X X X X Extracts X X X X ..... n favour of assessee Depreciation on Jodhpur property - Held that:- It is an undisputed fact that the asset was never put to use till date and therefore, it is not legally correct that the leased premise was capitalized and added to the block of assets. Therefore, such ineligible asset, which is not fulfilled the conditions of section 32 of the Act should not have been included in the block of assets. - Decided against assessee - I.T.A. No. 858/Mum/2014 & I.T.A. No. 738/Mum/2014 - - - Dated:- 30-9-2015 - SHRI G.S. PANNU, AM AND SHRI SANDEEP GOSAIN, JM For the Appellant: Shri Dhanesh Bafna Shri Arpit Agarwal For the Respondent: Shri Sanjeev Jain O R D E R PER G.S. PANNU, AM These are cross appeals, i.e., by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m of depreciation on Jodhpur property'. The Appellant submits that since such expenses are of capital in nature and the depreciation claim should be allowed as deductions in computing the total income. Grounds of appeal raised by the Revenue 1. Whether on the facts and circumstances of the case whether the CIT(A) is right in allowing depreciation on printers scanners at the rate of 60% instead of 15% relying upon the decision of Hon'ble Kolkata ITAT in Samiran Majumdar {280 ITR (AT) 74 (Kolkata)). 2. Whether on the facts and circumstances of the case whether the CIT(A) is right in allowing depreciation on Switches Routers at the rate of 60% instead of 15% relying upon the decision of Hon'ble ITAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the head Computers on which depreciation at the rate of 60% was claimed:- Particulars Amount (Rs.) Printer 3040213 Data Cable 130490 Router 3094066 Scanner 315423 Switch 291880 Total 80,46,483 5. According to the Assessing Officer, the above items, being Data Cables, Routers, Scanners, Printers, and Switches were computer peripherals and cannot be considered as a part of computer for the purposes of allowing depreciation at the rate of 60%. He tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arefully considered the rival submissions. In the case of Birla Soft Ltd. (supra), the question before the Hon ble High Court was as to whether the computer peripherals, like CD writers, printer, net work cables, switches, racks, isolators, dividers, etc. are entitled for depreciation at the rate of 60% or at the normal rate applicable to plant machinery . The Hon ble High Court following its earlier decision in the case of CIT Vs. BSES Yamuna Pvt. Ltd. 40 taxmann.com 108, held that such computer peripherals form a integral part of the computer system and hence they were entitled to depreciation at the higher rate of 60%. Therefore, we are unable to find any fault with the decision of the CIT(A) in holding that depreciation at the rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ercial use. During the proceedings before us, it was discussed about the allowability of the depreciation when the asset is admittedly unused, though the six years are lapsed till date. In this regard, Ld Counsel argued that the asset once included in the block of assets, the same will loose its individual identity, therefore, the depreciation should be allowed on the block of assets. Per contra, it is the argument of the Ld DR that when an ineligible asset is included in the block of assets, it is justified that the asset should not be excluded and is ineligible for grant of depreciation. 22. We have heard both the parties on this issue and perused the orders of the Revenue Authorities. It is an undisputed fact that the asset was ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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