2011 (2) TMI 1575 - AT - Income Tax

Summary

Issues involved:
1. Depreciation rate on VSAT equipments
2. Levying of interest u/s 234B, u/s 234C, and u/s 234D

Depreciation rate on VSAT equipments:
The appellant claimed depreciation at 60% on VSAT equipments, but the Assessing Officer (AO) allowed depreciation at 25% only, considering VSAT equipments as communication equipments. The CIT(A) upheld the AO's decision based on a previous ruling for the same assessee. The appellant's argument citing a different case was deemed distinguishable, as VSAT equipments were found to be communication, not computer, equipment. The ITAT upheld the lower authorities' decision, as the facts were similar to the earlier assessment year where the appellant did not challenge the ruling.

Levying of interest u/s 234B, u/s 234C, and u/s 234D:
The appellant contended that interest u/s 234B, u/s 234C, and u/s 234D should not be levied. However, the argument was not upheld, and the interest charges were deemed mandatory and consequential, leading to the dismissal of the appeal.

In conclusion, the ITAT upheld the decision of the lower authorities regarding the depreciation rate on VSAT equipments and the levying of interest u/s 234B, u/s 234C, and u/s 234D, ultimately dismissing the appeal of the assessee.