The assessee claimed higher depreciation at 60 per cent on EPABX and mobile phones claiming them to be computer. High Court ruled in the favour of Revenue and held that EPABX and mobile phones are not computers and, hence, higher depreciation at rate of 60% is not allowable on such equipment’s.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
Two questions are raised in the appeal filed by the appellant Bank. After hearing counsel for the appellant, and standing counsel for the respondent, and on going through the Tribunal’s order, we do not find any merit in the appeal because the first issue pertains to appellant’s claim for higher depreciation of 60% on EPABX and mobile phones. The rate of depreciation of 60% is available to computers and we do not find any ground to treat the communication equipments as computers. In our view, Tribunal rightly held that these equipments are not computers entitling the assessee for depreciation at 60%. So much so, this appeal on this issue is rejected. So far as the second issue of prior period expenditure is concerned, disallowance is confirmed by the Tribunal for want of evidence. We do not find any substantial question of law arising on this issue.
Consequently appeal is dismissed.