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TMI Blog2013 (12) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... ed is 60% - Decided against assessee. Depreciation on library books - Held that:- The cost of the books is less than Rs. 5,000 - 100% depreciation claimed by the assessee is to be allowed - Decided in favour of assessee. Exemption u/s 10A - Held that:- Following Gemplus Jewellery India Ltd. [2010 (6) TMI 65 - BOMBAY HIGH COURT] - Even if the disallowance is sustained, it will only go to increase the business profits of the assessee which is exempt u/s 10A - Assessing Officer is directed to recompute the deduction after taking into account disallowances made - Decided in favour of assessee. - ITA No.1015,1128/HYD/2012 - - - Dated:- 13-9-2013 - Chandra Poojari And Asha Vijayaraghavan, JJ. For the Appellant : Shri P Murali Mohan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itions to the fixed assets. Regarding the contention of the assessee that enough time was not given to present the said evidence, the CIT(A) held that inspite of several opportunities given during appeal proceedings, the assessee did not present required evidence, therefore, confirmed the action of the Assessing Officer in disallowing the depreciation. 5. Aggrieved by the order of the CIT(A) both the assessee and the revenue are in appeal before us. 6. The revenue in its appeal raised a ground that the CIT(A) erred in allowing expenditure on account of internet charges and delivery of software which is against the provisions of section 10A of the IT Act, 1961. 7. We find that the issue is squarely covered by the decision of the coordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd IT enabled services. During the FY 2006-07 relevant to AY 2007-08 the company had made additions to the fixed assets which are essential for the business and also submitted details pertaining to additions made to fixed assets: 1. Computers 3,26,500/- 2. Furniture Fittings 39,750/- 3. UPS 1,18,948/- 4. Cisco router 86,160/- 5. EPBX System 60,840/- 6. Software 2,68,250/- 10. The learned counsel submitted that the assessee company claimed depreciation on additions made to fixed assets in accordance with the provisions of the IT Act, 1961 whereas the CIT(A) had confirmed the action of the Assessing Officer in disallowing assessee's cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he additions to the fixed assets in support of his claim. This ground is allowed for statistical purposes. 13. Ground No. 2 raised by the assessee that, the CIT(A) has allowed depreciation @ 15% on UPS and treating the remaining portion of depreciation as excess depreciation claimed and disallowed, is misconceived as the CIT(A) directed the Assessing Officer to allow depreciation rate at 60% on UPS by observing as under: "The appellant had claimed depreciation @ 60% while the Assessing Officer allowed only 15%. UPS is an essential component of a computer system and ensures data integrity through uninterrupted supply of power. This is a dedicated system for computers only. Therefore, the depreciation rate to be allowed is 60%. The Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. Vs. ITO, 2010-TIOL-652-ITAT-MUM wherein it was held that even if the disallowance is sustained, it will only go to increase the business profits of the assessee which is exempt u/s 10A as per the decision of the Hon'ble Bombay High Court in the case of Gemplus Jewellery India Ltd., 233 CTR (Bom). The Hon'ble Bombay High Court in case of Gemplus Jewellery India Ltd. (supra) held as follows: "exemption u/s 10A profits and gains derived from exports addition on account of disallowance of employer's and employees' contribution towards PF/ESIC Disallowance of the PF/ESIC payments has been made because of the statutory provisions i.e. section 43B in the case of the employer's contribution and section 36(1)(v) r.w.s. 2(24)(x) in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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