Waters (India) Private Limited Vs DCIT (ITAT Bangalore)
It is settled position of law that computer and its accessories and peripherals are entitled to higher rate of depreciation of 60%. The CIT(A) held that the assessee is entitled to depreciation of 60% on printer and 15% on UPS by holding that UPS is not part of component / equipment connected with computer. The Hon’ble Bombay High Court in case of Pr.CIT v. Goa Tourism Development Ltd. (supra) had held that UPS is a component / equipment connected with computer, and therefore, entitled to 60% depreciation. The judgment relied on by the CIT(A) is not applicable to the facts of the case. The Hon’ble Kerala High Court in the case of The Federal Bank Limited v. ACIT reported in ITA No.524 of 2009 (judgment dated 26th November, 2010) was considering a case of EPABX and mobile phone whether it is entitled to depreciation at the rate of 60% and the Hon’ble High Court held that it is not a part of computer peripherals. Therefore, following the judgment of the Hon’ble Bombay High Court in the case of Pr. CIT v. Goa Tourism Development Ltd. (supra), we hold that the assessee is entitled to depreciation at 60% on UPS.
