9911796707
|
Home
Issues involved:
1. Depreciation rate on computer software 2. Exclusion of export incentives from eligible profits for deduction u/s 80IB Depreciation rate on computer software: The assessee appealed against the CIT(A)'s order regarding the depreciation rate on computer software, claiming it should be allowed at 60% instead of 25%. The AO disallowed depreciation of Rs. 11,67,646/- as the software was purchased for Rs. 17,82,248/- and allowed depreciation at 25%, following the AY 2004-05 order. The ITAT considered a similar issue in AY 2004-05 and allowed the assessee's claim for depreciation at 60% based on the actual use of the software for business purposes, treating it as an intangible asset. Consequently, the ITAT directed the AO to allow depreciation at 60% as claimed, citing the decision in the case of Amway India Enterprises Vs. Dy. Commissioner of Income tax. Therefore, the appeal was partly allowed on this ground. Exclusion of export incentives for deduction u/s 80IB: The second ground of appeal was related to the exclusion of export incentives, like DEPB, from eligible profits for computing deduction u/s 80IB. The counsel for the assessee acknowledged that this issue was decided against the assessee by the Hon'ble Supreme Court in the case of Liberty India vs. CIT (2009) 317 ITR 218. As the issue was already settled against the assessee by the Supreme Court's decision, ground No. 2 was dismissed. Consequently, the appeal was partly allowed on the first ground but dismissed on the second ground.
|
