ACIT Vs M/s. Caparo Engineering India Pvt. Ltd. (ITAT Delhi)
With regard to the disallowance of claim of depreciation @ 60% on UPS, the Assessing Officer has allowed 15% instead of 60% claimed by the assessee on the ground that UPS is not part of computer and thereby made the addition of Rs.2,21,895/-. The assessee had purchased UPS for Rs.4,93,110/- and had claimed depreciation thereon @ 60% for Rs.2,95,860/-. The Assessing Officer observed that depreciation mentioned in Appendix-I Rule 5 of IT Rules applies only to computer and computers software, which alone are entitled for depreciation @ 60% and same rate cannot be applied for UPS.
The ld. CIT(A) has deleted the addition, following the judgment of Hon’ble Delhi High Court in the case of CIT vs. BSES Rajdhani Powers Ltd. in ITA 1266/2010, wherein computer accessories/peripherals like printers, scanners, server, UPS, etc., have been held to be integral part of computer system, and therefore, entitled to depreciation @60%. Accordingly, the ld. CIT (A) following the judgment of Hon’ble Delhi High Court and other decisions of the Tribunal allowed the assessee’s claim @60%.
ITAT find any infirmity in the order of the ld. CIT(A) as the issue, whether computer accessories/ peripherals like printers, scanners, server, UPS etc, the rate of depreciation allowable is @ 60% as held by the Hon’ble Jurisdictional High Court and catena of other judgments.
