Dimple Vishal Agrawal Vs ITO (ITAT Ahmedabad)
ITAT held that assessee is entitled for depreciation at the rate of 60% of xerox machine WV-5745. The simple reason is that the ld.CI(A) failed to comprehend true nature of this asset. It has been treated as photo-state machine without going through literature of the machine supplied by the manufacturer. According to the manual, it is multi-functional printer. Its feature to make photo-state of a paper is an added activity. It is also pertinent to observe that admissibility of depreciation at the rate of 60% is not disputed by the ld.CIT(A). The ld.CIT(A) has granted this rate of depreciation on all other assets, which are treated as peripheral of the computer. To my mind, this asset cannot be excluded for the reasons assigned by ld.CIT(A). It is to be treated as an integral part of the computer system which helps printing from the computer connected with it. Therefore, I allow this appeal, and delete disallowance.
FULL TEXT OF THE ITAT JUDGEMENT
Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-5, Vadodara dated 29.1.2020 passed for the Asstt.Year 2013-14.
2. Sole grievance of the assessee is that the ld.CIT(A) has erred in confirming the allowance depreciation at the rate of 15% as against 60% claimed by the assessee on xerox machine WV-5745.
3. Brief facts of the case are that the assessee has filed her return of income on 14.9.2013 declaring total income at Rs.8,80,560/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts, it revealed to the AO that the assessee has claimed depreciation at the rate of 60% whereas in his opinion depreciation at the rate of 15% is available on these printers, xerox-machine etc. The details of asset, rate of depreciation claimed, and allowed by the AO has been noticed by the CIT(A) on page no.2 of the impugned order. Such details read as under:
