60% Depreciation Allowable on Software Licenses

DCIT Vs Gujarat Green Revolution Co. Ltd. (ITAT Ahmedabad)

The facts of the case are that the AO had restricted depreciation claimed by the assessee on Licences to use software @ 25% as opposed to rate of depreciation of 60% claimed by the assessee resulting in disallowance of depreciation of Rs.2,25,170/-.The Ld.CIT(A) held that the assessee is entitled to depreciation on softwares @60% following the decision of the Special Bench of the ITAT in the case of Amway India Enterprises vs DCIT (2008) 111 ITD 112(Del) (SB).