TMI Blog2017 (6) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... em. 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% percent - Decided in favour of assessee. - ITA No. 6197/DEL/2013, And ITA No. 6278/DEL/2015 - - - Dated:- 25-4-2017 - SHRI R.K. PANDA ACCOUNTANT MEMBER, AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER For The Assessee : Shri R.S. Ahuja, Adv For The Revenue : Smt. Bedobani Chaudhari, Sr. DR ORDER PER R.K. PANDA, ACCOUNTANT MEMBER:- ITA No. 6197/DEL/2012 filed by the assessee is directed against the order dated 20.09.2013 of the CIT(A)-XXIII, New Delhi relating to A.Y. 2009-10 whereas ITA No. 6278/DEL/2015 filed by the assessee is directed against the order dated 14.09.2015 of the ld. CIT(A), New Delhi relating to A.Y 2011-12. For the sake of convenience, both the appeals were heard together and are being disposed of by this common order. ITA No. 6197/DEL/2013 [A.Y 2009-10] 2. The ld. Counsel for the assessee did not press Ground of appeal No. 1 for which the ld. DR has no objection. Accordingly Ground of appeal No. 1 is dismissed as not pressed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to it and the printer prints the material as desired. It requires once attendant to monitor the whole process. The Inspector also visited the premises of Shri Sumit Dev and found that no such machine was installed at the premises of the assessee and as per the set up of the office, it seems that the office is used for trading purposes only and no printing work is done. The A.O, therefore, issued notice u/s 131 of the Act to Shri Sumit Dev who appeared before the A.O and deposed as under: 1. That he deals in Inkjet Printer, Print heads and allied products like software. 2. He has been into this business for more that five years and there has been no change in the nature of business. 3. That the printer in question was purchased for use in exhibitions for the purpose of marketing. 4. That printer is used to paper and other media. 5, That the printer is kept at godown of the assessee at 347, Udyog Kendra, Greater Noida, U.P 6. That the printer is used for own official marketing propose in exhibition and demonstrations and no printing is done with it to generate revenue. 6. From the above, the A.O observed that product/printer was purchased by the assessee from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee strongly objected to the order of the ld. CIT(A). He submitted that the A.O did not allow higher rate of depreciation on the ground that the machine was not a normal printer but a heavy duty printer which can print on Media mainly Flex, PVC Vinyle, one way vision, mesh etc. and size of the printer was very big weighing about 1200 Kg and that the assessee was not in the business of printing and was doing business of trading and the machine was used for demonstration purposes. According to the ld. CIT(A), the volume, weight and dimension of the printer is such that it cannot be treated as a computer peripheral by any stretch of imagination. According to him, the cost of the printer is about 50 lakhs whereas the cost of the computer is negligible and therefore, the same cannot be eligible for profit rate of depreciation @ 60%. 11. Referring to the decision of the Hon'ble Delhi High Court in the case of CIT Vs. BSES Yamuna powers Ltd reported at [2013] 358 ITR 0047 [Del], he submitted that the Hon'ble Delhi High Court in the said decision has held that computer accessories and peripherals cannot be used without computer as they are part of computer system and, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the A.O and the ld. CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited by both the sides. We find the assessee, in the instant case, has purchased an Inkjet Printer from M/s Caldron Graphics for a cost of ₹ 50,44,000/- and claimed depreciation @ 60% which is the rate applicable for computers and printers. We find the A.O rejected the claim of higher rate of depreciation @ 60% on the ground that the machine purchased by the assessee was not a normal printer but a heavy duty printer which can print Media mainly Flex, PVC Vinyle, one way vision etc. The volume, weight and dimension of the printer was very high and therefore, it cannot be called a computer peripheral. Further, the assessee was not in the business of printing but was doing business of trading and this machine was used for demonstration purposes. He, therefore, treated this printer as normal machine eligible for depreciation @ 60%, which has been upheld by the ld. CIT(A). It is the submission of the ld. counsel for the assessee that the assessee has purchased a printer which has been used by the assessee for the purposes of its business. Merely becau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ripherals 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% percent 19. We find the Hon'ble Delhi High Court in the case of CIT Vs. City Corp Maruti Finance Ltd [supra] has observed as under: 3. In so far as second issue is concerned, it should not be disputed by the ld. counsel for the Revenue that this issue is now settled by the judgment of this court in the case of Commissioner of Income-tax Vs. BSES Yamuna Powers Ltd [ITA No. 1267/2010 decided on 31.8.2010] holding that on computers and peripherals, deprecation at the rate of 60% is allowable. 20. Various other decisions relied on by the assessee also support the case of the assessee that the printer is eligible for higher rate of deprecation @ 60%. Since in the instant case the printer is used by the assessee for the purposes of its business and cannot function without a computer, therefore, we are of the considered opinion that this printer is eligible for higher rate of deprecation @ 60%. Ground raised by the assessee is accordingly allowed. 21. ITA No. 6278/DEL/2015 22. The only effective ground r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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