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TMI Blog2016 (9) TMI 1617X X X X Extracts X X X X X X X X Extracts X X X X ..... e block of assets of computers at the rate of 25% as against the rate of 60% claimed by the appellant and thereby disallowing the claim of depreciation to the extent of Rs. 13,66,773/- and the reasons assigned for doing so are wrong and contrary to the provisions of the Income Tax Act, 1961, and the Rules made there under. 2. The only ground raised by the assessee is against restricting the claim of depreciation on computer softwares forming part of the block of assets. 3. Ld. AR appearing on behalf of the assessee submitted that the assessee company is engaged in collateral management i.e; controlling and mitigating risk for majority of the agro and industrial commodities, procurement of food grains on behalf of FCI. It was submitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 476 (Delhi) (Special Bench) ii. DCIT Vs. Datacraft India Ltd. 133 TIJ 377 (Special Bench) iii. Container Corporation of India Ltd. Vs. ACIT [2009] 30 SOT 284 [Delhi] 4. On the other hand Ld. DR relied upon the abovementioned order and also relied upon the order passed by lower authorities. 5. We have heard the rival submissions and also perused the material placed on record before us. And after analysing the order passed by the Ld. CIT(A) we are of the considered view that 'Software' consists of the programs and application that run on computers, and computer including computer software on which rate of depreciation has been prescribed as 60%. And the said rates are effective from Assessment Year 2003-04 wherein the "Computer Softwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 1st April 2003. The Tribunal further observed at paragraph 55 pg. No. 525 as under: " That Computer Software has not been defined in the Act, but in Note-7 to Appendix-I to the Income-tax Rules, it has been explained to include computer programme recorded on any disc, tape, perforated media or other information storage device. Therefore computer software (whether in canned form or uncanned form) is goods and a tangible asset by itself." ii) DCIT Vs. Datacraft India Ltd. 133 TIJ 377 (SB) (Mum) wherein the Tribunal observed that the definition of computer should not be restricted to the Central Processing Unit of computer, but should also extend to all the input and output devices which support computer in the receipt of input and ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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