Case Law Details
Falcon Business Resources Pvt. Ltd. Vs DCIT (ITAT Delhi)
The lower authorities while deciding the issue whether the depreciation is allowable on mobile phones @ 15% or considering the mobile phones computers @ 60%. This issue has been decided by the solitary decision of Hon’ble Kerala High Court in the case of Federal Bank Ltd. Vs. ACIT (supra) wherein it has been held that mobile phones are not computers and, therefore, depreciation on these mobile phones shall be allowed at the general rate of depreciation on plant and machinery @ 15%. This being the solitary decision on the issue and is binding on us, respectfully following that we uphold that depreciation on mobile phones is allowable @ 15% and not @ 60%. However, we may note that there are smart phones which do function equivalent to the computers or much more than a computer, if the functionality of a mobile phone are shown to be more than a communication equipment, perhaps, it may qualify as a computer. However, as no such information is available in the present case, we respectfully follow the decision of the Hon’ble Kerala High Court in the case of Federal Bank Ltd. Vs. ACIT (supra) and dismiss the appeal of the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
01. This appeal is filed by assessee against the order of the CIT (Appeals)–34, New Delhi, dated 29.12.2017 for assessment year 2012-13.
02. The solitary ground in this appeal is whether the ld. CIT (Appeals) was justified in upholding the action of the ld. Assessing Officer in allowing depreciation on mobile phones @ 15% instead of @ 60% claimed by the assessee following the decision of Hon’ble Kerala High Court.
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