TMI Blog2018 (9) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... o assessment year 2012-2013. The question whether such asset was eligible for depreciation available to "computer and computer softwares" had come up before this Tribunal in assessee’s own case for assessment year 2012-2013 wherein held Once the Ld.CIT(A) has himself held the purchase made by the assessee company is a design software, we wonder as to how it cannot be treated as a computer software. The design software embedded in CD containing the design has to be necessarily treated as computer software and the same is clarified in Note 7 of the new Appendix-1 of the Rules which states that “computer software” means any computer program recorded on any disk, tape, perforated media or other information storage device. Further as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the Tribunal in assessee s own case for assessment year 2012-2013. Vis- -vis the Department appeal, ld. Departmental Representative agreed that the tax effect was less than ₹ 20,00,000/- 4. We have heard the contentions. In so far as Department appeal is concerned, tax effect is less than ₹ 20,00,000/- and by virtue of CBDT Circular No.3/2018, dated 11.07.2018, such appeal cannot survive. In so far as appeal of the assessee is concerned, the claim of depreciation was on software in the nature of design and assembly drawings of hydraulic cylinders, bill of materials and other components. Depreciation was claimed by the assessee on the opening written down value of this asset. Acquisition of the said asset was in financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserving as under:- 6. I have carefully considered the facts, order ofthe AO, submissions made by the appellant and material on record. He appellant which is in the business of manufacture of hydraulic cylinders acquired CAD drawings and capitalized the cost under the head Computer or Computer Software . This is a design software embedded in CD containing the design etc. So in my view it does not tantamount to use of computer software. Therefore, the alternative plea of the appellant needs to be considered. Therein it has been pleaded that s.32(1)(ii) deals with depreciation on intangible assets and includes patents, copyrights, trade mark, licenses or commercial rights eligible for depreciation @ 25% may be considered in lieu o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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