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Thomas Cook (India) Limited, Versus Addl. Commissioner of Income Tax 1 (3) , Mumbai.

2015 (9) TMI 1425 - ITAT MUMBAI

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. BSES Yamuna Pvt. Ltd case [2010 (8) TMI 58 .....

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n 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 referred to as the CIT(A) ) dated 18.11.2013, w .....

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als) ('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 Jodhpur Property of ₹ 2,07,435/-. On t .....

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ng 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 .....

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,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 raised by the assessee and Ground of appeal n .....

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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 of allowing depreciation at the rate of .....

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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 Computer . He submitted that the Hon ble .....

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efully 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 com .....

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le 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 appeal of assessee is with regard to the d .....

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