TMI Blog2014 (11) TMI 1212X X X X Extracts X X X X X X X X Extracts X X X X ..... ent made on account of audit fee - HELD THAT:- Restore this issue to the file of the Assessing Officer for the limited purpose of verifying as to whether the assessee company is treated as an assessee in default under S.201(1) of the Act for its failure to deduct tax at source from the payment made on account of audit fee. If it is found on such verification that no order under S.201(1) is passed to this effect, the Assessing Officer is directed to delete the disallowance made under S.40(a)(ia) on account of audit fee. Grounds No.2 and 3 of the assessee s appeal are accordingly treated as allowed for statistical purposes. Disallowance on account of depreciation on Xerox copiers, LCD TV, colour copier and LCD screens - assessee has filed a written note explaining the usage or application of the relevant items/assets in support of its case that they form an integral part of the computer/computer systems used by the assessee - HELD THAT:- Referring to note filed by the assessee explaining the usage or application of the relevant items/assets as well as the orders of the authorities below, we find that the submissions explaining the usage or application of the concerned items/ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, relying inter-alia on the decision of the Delhi Bench of the Tribunal in the case of ACIT V/s. Shakti Bhog Foods P. Ltd. (ITA No.2777 to 2781/Del/2010 dated 28.6.2011), wherein it was held relying on the decision of the Apex Court in the case of CIT V/s. Vinay Cements Ltd. (213 CTR 268), that the employees contribution towards Provident Fund and ESI having been paid by the assessee before the due date of filing of the return of income for the year under consideration, it was entitled to claim deduction for the same as per S.43B of the Act, read with second proviso thereto. 5. At the time of hearing before us, the learned representatives of both the sides have agreed that the issue involved in the appeal of the Revenue is squarely covered by the various decisions of the Tribunal as well as High courts. In one such decisions recently rendered on October 14, 2014 in the case of CIT V/s. Ghatge Patil Transport Ltd. (Income Tax Appeal No.1002 of 2012), Hon'ble Bombay High Court, after taking into consideration the provisions of S.2(24)(x) read with S.36(1)(va) and S.43B, held that even employees contribution to Provident Fund etc. is allowable as deduction, if the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the file of the Assessing Officer for the limited purpose of verifying as to whether the assessee company is treated as an assessee in default under S.201(1) of the Act for its failure to deduct tax at source from the payment made on account of audit fee. If it is found on such verification that no order under S.201(1) is passed to this effect, the Assessing Officer is directed to delete the disallowance made under S.40(a)(ia) on account of audit fee. Grounds No.2 and 3 of the assessee s appeal are accordingly treated as allowed for statistical purposes. 10. The issue involved in grounds No.4 to 7 of the assessee s appeal involve a common issue relating to the disallowance made by the Assessing Officer and confirmed by the learned CIT(A) on account of depreciation on Xerox copiers, LCD TV, colour copier and LCD screens. 11. While examining the claim of the assessee for depreciation, it was found by the Assessing Officer during the course of assessment proceedings that the assessee has claimed depreciation at higher rate of 60% on xerox copiers, Samsung LCD TV, colour copier and LCD project screens of the total value of ₹ 56,83,960, treating the same as fal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g used in conjunction with external files, or more of which contain computer programmes, electronic instructions, input data and output data, that performs function ns including, but not limited to, logic, arithmetic, data storage and retrieval, communication and control In the said case of Samiran Majumdar (supra), it was reported by the Inspector of Income Tax Department, after verifying the function of the printer and the scanner, that they ran with the help of computer and were external devices attached to the computer with the help of cables. On the basis of this report of the Inspector, the Tribunal held that the printer and scanner were integral part of the computer system, as they could not be used without the computer and accordingly depreciation at higher rate as applicable to the computer was allowed by the Tribunal on printer and scanner. In the case of ACIT V/s. GE Capital Business Process Management Services Pvt. Ltd. (ITA NO.2887/Del/2011 for assessment year 2007-08 dated 13.4.2012) it was held by the Delhi Bench of the Tribunal that computer accessories and peripherals such as printer and scanners, servers etc. form an integral part of the computer system ..... X X X X Extracts X X X X X X X X Extracts X X X X
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