Case Law Details
ACIT Vs Indiabulls Ventures Ltd (ITAT Delhi)
The issue under consideration is whether the depreciation at the rate of 60% will be allowed for computer related software?
In the present case, the issue of excess depreciation claim the ld CIT (A) held that the assessee has purchased software on which the depreciation is allowable @60% and not @25% has allowed by the ld AO. Therefore, referring to the sub-clause 5 of clause III of part A appendix 1 to Rule 5(1) he held that on computers and computer software assessee is eligible for deduction @60%. The connected dispute with respect to the same deduction was the amount of cost of the asset on which depreciation is to be allowed. As mentioned by the ld CIT (A) according to the ld AO the software purchased was of Rs. 21 laks and not Rs. 20681452/-. Thus the ld CIT (A) on Principle held that software depreciation has to be allowed @60% however, he directed the ld AO to verify the amount of actual cost of the asset on which depreciation is to be allowed. Revenue is aggrieved by the order of CIT hence filed the appeal before ITAT.
ITAT states that, they find no infirmity in the order of the ld CIT (A) in upholding that depreciation on software is allowable @60%. However, for working out actual block of asset on which depreciation is to be allowed, ITAT also directed the ld AO to verify the same. Therefore, the appeal filed by revenue is dismissed.
FULL TEXT OF THE ITAT JUDGEMENT
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