9911796707
TMI Blog2018 (9) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... Chennai. 2. Ld. Counsel for the assessee at the outset submitted that tax effect in the appeal of the Department was less than Rs. 20,00,000/- and therefore such appeal would not survive. With reference to the appeal of the assessee, ld. Counsel submitted that issue was disallowance of depreciation claimed at the rate of 60% on design software comprising of drawings and designs, engineering and development of special purpose custom built hydraulic cylinders and excavator equipments. As per the ld. Authorised Representative, this issue stood covered in favour of the assessee by the decision dated 22.03.2018 of this Tribunal in assessee's own case for assessment year 2012-2013 in ITA No.2123/CHNY/2017. 3. Ld. Departmental Representative fai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. BL 200 Wheel loader 3. BG- 605 Motor Grader 4. BG - 825 Motor Grader 5. BE-220 Excavator 6. BG-405 Motor Grader 6 sets 11,00,000.00 0 11,00,000.00 The Ld.AO opined from the above invoice that the purchase made by the assessee is only design and assembly drawings of hydraulic cylinders consisting of six sets. On appeal, the Ld.CIT(A) granted partial relief to the assessee by holding the purchases made by the assessee as intangible assets and thereby granted depreciation @ 25% by observing 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 cylind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Rule, the rates prescribed for computer software is 60% for the relevant assessment year. Therefore we hereby direct the Ld.AO to grant the benefit of depreciation @ 60% for the purchase of design software by the assessee''. In line with the above, we hold that assessee was eligible for claiming depreciation @60% on the concerned asset. Grounds raised by the assessee are therefore allowed. 5. In the result, the appeal of the assessee is allowed whereas that of Department is di ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
