TMI Blog2021 (3) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... The taxpayer's objective was to use computer software to maximize its performance and streamline efficiency. The Hon'ble Bombay High Court in the case of M/s. I-Flex Solutions Ltd [2 014 (3) TMI 1162 - BOMBAY HIGH COURT ] held that there is no reason to differentiate the computer and the software as the latter is an integral part of the former. The software cannot be seen in isolation delinked from the computers. The issue of depreciation @ 60% on the software is now a settled issue beyond any perplexity. Hence, we decline to interfere with the order of the ld. CIT(A). Revenue's appeal is dismissed. - ITA No. 4849/Mum./2019 - - - Dated:- 8-3-2021 - S. Rifaur Rahman , Member ( A ) And Pavan Kumar Gadale , Member ( J ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for by the Assessing Officer. The Assessing Officer during the course of assessment proceedings observed that the assessee in the immediate preceding assessment year 2012-13 was assessed under scrutiny when the then Assessing Officer had found that the assessee had made addition in software during that year and claimed depreciation thereon @ 60% whereas it was allowable @ 25% being intangible asset. The assessee, in response the confrontation of the Assessing Officer to explain as to why depreciation be not restricted to 25%, the assessee stated that the depreciation on software is allowable @ 60%. According to the Assessing Officer, there was no force in the submissions made by the assessee and observed that the addition in software was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals) allowed the appeal of the assessee. Being aggrieved, the Revenue is in appeal before the Tribunal. 5. Before us, the learned Departmental Representative assailing the order of the learned Commissioner (Appeals) submitted that the assessee is eligible for depreciation @ 25% and hence, prayed for upholding the order of the Assessing Officer. 6. The leaned Counsel for the assessee submitted before us that two issues i.e., (i) rate of depreciation on software and (ii) claim for deduction on account of ESOP raised in the present appeal due to transactions of the said erstwhile entity. He submitted that the learned Commissioner (Appeals) while allowing the claim on the said two issues as referred to and relied on the order passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... performance and streamline efficiency. The Hon'ble Bombay High Court in the case of M/s. I-Flex Solutions Ltd. reported in 225 Taxmann 37 held that there is no reason to differentiate the computer and the software as the latter is an integral part of the former. The software cannot be seen in isolation delinked from the computers. Similar view has been taken by the Co-ordinate bench of ITAT in the case of Make My Trip (India) Pvt. Ltd. Vs. DCIT in ITA No. 6055/Del/2010 and Globe Capital Market Ltd. Vs. CIT in ITA No, 2926/Del/2012. The issue of depreciation @ 60% on the software is now a settled issue beyond any perplexity. Hence, we decline to interfere with the order of the ld. CIT(A). 8. Since the issue before us is mutatis muta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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