9911796707
TMI Blog2012 (3) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... k Ltd., and the assessee company provides software development and information technology enabled services to its holding company, i.e. Saraswat Bank. During the year, the holding company i.e. Saraswat Bank acquired three banks, i.e. Nasik Peoples Co.op.Bank, Murgha Rajendra Sahakari Bank and Anna Saheb Karale Sahakari Bank. During the course of assessment proceedings, the assessee company had acquired certain capital assets which would provide certain computers and technology services to its holding company, i.e. Saraswat Co.Op. Bank Ltd. The Assessing Officer also noticed that the assessee company had capitalized purchase of UPS under the block of "computers" and claimed depreciation @ 60%. The AO further noted that the assessee company h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions. 4. Aggrieved by the view taken by the CIT(A), the assessee is now in appeal before us. 5. Before us, learned A.R. of the assessee submitted that UPS is an integral part of the computer system as they can be used only alongwith the computers. UPS, according to the A.R. are connected to local area network, PCs, servers, routers, V-sats and thereform integral part of the overall computes systems as they regulate the flow of the power to avoid any kind of damage to the computer network done to fluctuation in power on sudden loss of power, which could bring the whole operation to a halt, causing loss of valuable data. The A.R. placed before us a decision of Hon'ble Delhi High Court in ITA No.65 of 2011 and ITA No.66 of 2011 in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 60%. 7. On both these issues, the Bench, respectfully follow the decision of Hon'ble Delhi High Court so far as UPS is concerned as will also follow the decision of coordinate bench of ITAT Delhi so far as ATM is concerned. It is important to note that even ITAT, Mumbai(SB) in the case of DCIT vs. Datacraft India Ltd., 6 Taxman.com.85 has taken the view that routers & switches are to be included in the block of computers as they cannot be used without the computers. 8. Coming to the depreciation on purchase of software license, the revenue authorities held that the assessee company could not prove that the software was acquired and installed and put to use by 31.3.2008 and hence they disallowed the depreciation. Before the Bench, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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