Case Law Details
Religare Securities Ltd. Vs DCIT (ITAT Delhi)
The issue under consideration is whether the UPS is considered as essentially part of computer system and depreciation at rate of 60% charged on it?
In present case, the assessee claimed depreciation on UPS @ 60% treating the same to be part of computer and peripherals. But the AO held that UPS is not a part of computer and peripherals and it is eligible for depreciation @ 15% being plant & machinery. Tthe ld. CIT(A) allowed depreciation @ 60%.Hence revenue filed the appeal against this order of the CIT(A).
ITAT states that, the Hon’ble Delhi High Court in the case of CIT BSES Yamuna Powers Ltd. vide ITA No.1267/2010 and in the case of BSES Rajdhani Powers Ltd. vide ITA No.1266/2010 has held that UPS is an essential part of computer system and is eligible for depreciation @ 60%. The various other decisions relied on by the ld. Counsel in the paper book also supports its case that UPS is eligible for higher rate of depreciation. In view of the above, ITAT do not find any infirmity in the order of the CIT(A) in directing the AO to allow depreciation @ 60% on UPS. Accordingly, the order of the CIT(A) is upheld and the appeal raised by the Revenue is dismissed.
FULL TEXT OF THE ITAT JUDGEMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
