GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2015 (9) TMI 1425 - ITAT MUMBAI

2015 (9) TMI 1425 - ITAT MUMBAI - TMI - Depreciation on certain computer peripherals - Held that:- 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 of 60% is allowable on the cost of Printers, Routers, Scanners and Switches. See Birla Soft Ltd. [2011 (12) TMI 608 - DELHI HIGH COURT] & CIT Vs. BS .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ection 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 the assessee and the Revenue, directed against the order of the Commissioner of Income Tax, (hereinafter referre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

learned Commissioner of Income-tax (Appeals) ('CIT(A)'} erred in upholding the action of the Assessing Officer making an adjustment of ₹ 5.87,205/- to the total income of the assessee on account of 'excessive claim of depreciation on data cables by applying rate of depreciation of 15% applicable to the block of 'plant and Machinery' as against the rate of 60% (i.e. rate applicable to the block' Computer') . Ground 2: Disallowance of claim of Depreciation on Jodh .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ould 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eclaring a total income of ₹ 25,53,92,971/- which was revised to ₹ 24,20,16,971/-. The return of income filed by the assessee was subject to a scrutiny assessment u/s 143(3) of the Act, whereby, the total income has been assessed at ₹ 39,50,69,030/- after making certain additions/disallowances. The CIT(A) has allowed certain partial relief and accordingly the assessee as well as the Revenue are in appeal before us on the stated Grounds of appeal. 3. Ground of appeal no. 1 raise .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r noticed that the following five items totalling to ₹ 80,46,483/- were also classified under 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

epreciation at the rate of 60%. On this aspect of the matter, Revenue is in appeal before us. With regard to the cost of Data Cable, the CIT(A) concurred with the Assessing Officer that the same is entitled for depreciation at the rate of 15%. On this aspect, assessee is in appeal before us. 7. The ld. Counsel for the assessee submitted that the CIT(A) and the Assessing Officer have erroneously disallowed the higher rate of depreciation on the cost of data cables holding it not to be a part of C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the authorities below. 9. We have carefully 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ard to the rate of depreciation applicable to the cost of data cables; herein also, we find that assessee is liable to succeed in view of the Judgment of Hon ble Delhi High Court in the case of Birla Soft Ltd. (supra), wherein, the network cables have been held entitled to depreciation at the rate of 60%. Thus, on this aspect, the Ground of appeal no. 1, raised by the assessee is allowed, and the Grounds of appeal raised by the Revenue are dismissed. 11. The only other Ground remaining in the ap .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

More Notifications


Latest Circulars:

21-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version