TMI Blog2014 (9) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... 466/DEL/2013 - - - Dated:- 1-9-2014 - SHRI G.D. AGRAWAL, VICE PRESIDENT AND SHRI H.S. SIDHU, JUDICIAL MEMBER Department by : Smt. Parwinder Kaur, Sr. DR Assessee by : S h. Rohit Gar, CA and Tejasvi Jain, CA ORDER PER H.S. SIDHU : JM Revenue has filed this Appeal against the impugned order dated 25.7.2013 passed by the Ld. CIT(A)-V, New Delhi relevant to assessment year 2003-04. 2. The following grounds have been raised :- 1. Whether the Ld. CIT(A) has erred in law and on facts in holding that Point of Sales (POS) systems are computers and allowing depreciation @ 60% thereon ignoring the fact that every electronic item having memory and storage cannot be covered under the definition of computers eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/-. Further revealed that assessee has also claimed depreciation @ 60% on P.O.S amounting to ₹ 28,53,698/-, amounting to ₹ 17.12,213/- as the same put to use for more than 18O days and @ 30% on P.O.S. purchased for ₹ 37,35,752/- for ₹ 11.20,725/- as the same put to use less than 180 days, treating the same as 'Computer instead of Accessories . It is seen that these are P.O.S. and not Computer i.e. we can say these items as Computer Accessories . As the depreciation rates mentioned in Appendix-I [rule 5] of I.T. Rules, only computers and computer software will be entitled for depreciation @ 60%. Since as per the I.T. Rules, only the computers and computer software are eligible for depreciation @ 60%, the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd also has two USB ports. After considering the submissions made by the counsel of the assessee, as discussed above facts, the assessee company's claim of depreciation @ 60% is disallowed on computer accessories and peripherals i.e. printers and monitors claimed amounting to ₹ 28,32,938/- and the same is allowed @ 25% worked out to ₹ 11,80,394/- treating the same as normal plant and machinery. The disallowance is worked out at ₹ 16,52,544/-. 6. Aggrieved by the aforesaid order of the Assessing Officer dated 30.1.2006, assessee filed an appeal before the Ld. First Appellate Authority, who vide impugned order dated 25.7.2013 had decided the issue in dispute in favor of the assessee by respectfully following t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant further relied upon the following decisions:- - CIT vs. BSES Rajdhani Powers Ltd. in ITA No. 1266/2010 (Del. HC) - ITO v. Samiran Majumdar: 98 ITD 119 (Kol.) - DCIT v. Data craft India Ltd. 133 TTJ 377 (Spl. Bench). 6.2 Finding on Ground of Appeal No.4 to 4.1 I have considered the submissions made by the appellant and also perused the assessment order passed by the assessing officer. On perusal of the technical specification of POS as filed by the appellant, it is noticed that POS terminal has a processor, minimum of 256 MB memory and also supports MS-DOS and Microsoft Windows. Further, the POS machines support data sharing through LAN (Ethernet) and also have two USB ports. That being so, I am of the opinion, that the P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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