Case Law Details
Frick India Ltd. Vs DCIT (ITAT Delhi)
Assessee had made a claim of depreciation of Rs 60% on UPS but the AO restricted the claim of depreciation @ 15% only on the UPS and disallowed the excess 45% namely, Rs.50,320/-.
It was submitted on behalf of the assessee that it is settled proposition of law that in the term “Computer” includes paraphernalia and accessories are included reliance was placed on the judgment of Hon’ble Delhi high Court in DCIT vs. Hotel Excelsior Ltd. 141 TTJ 248 (Delhi) and CIT vs. Oriented Ceremics and Industries Ltd. 200 Taxman 64 (Delhi).
In the light of aforesaid, it is established that the UPS is integral part of the computer and the depreciation upon same should be one given upon the computers @ 60%. Accordingly the ground is decided in favour of assessee and the ld. AO shall reassess the depreciation @ 60%.
Payment for merely acquiring a right to use technical know-how allowable as revenue expense
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