Case Law Details
ITAT in assessee’s own case vide order dated 19.11.2010 allowed depreciation @ 60% on ITG networking equipment by observing as under:-
“16. From the above note, it is clear that the above equipment primarily include the routers, switches, modems, etc. which are in the nature of input and output support devices which performs the functions including communication and control and, thus, they are computer hardware when they are used along with computer and when their functions are integrated with `computer’. Such devices used as part of the computer in its functions and, thus, it can be termed as `computer’ only, therefore, eligible for depreciation @ 60%. Therefore, also we find no infirmity in the claim of the assessee of depreciation @ 60% of ITG networking equipments.”
Since the issue is squarely covered by the decision of ITAT in the assessee’s own case as also by the decision of Hon’ble Delhi High court in the case of BSES Yamuna Powers Ltd. (supra), we do not find any infirmity in the order of CIT(A) deleting the addition on account of difference in depreciation. The Assessing Officer is directed to allow depreciation on ITG Networking Equipments and cables etc. @ 60%.
INCOME TAX APPELLATE TRIBUNAL, DELHI
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