2017 (1) TMI 1532

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..... depreciation at the higher rate of 60 per cent. See BSES Yamuna Powers Ltd. [2010 (8) TMI 58 - DELHI HIGH COURT]
Shri Mahavir Singh (Judicial Member) And Shri N.K. Pradhan (Accountant Member) For the Revenue : Shri M.V. Rajguru,DR For the Assessee : None ORDER PER N.K. PRADHAN, AM This is an appeal filed by the revenue. The relevant assessment year 2010-11. The appeal is directed against the order of the Commissioner (Appeals) - 17, Mumbai and arises out of the order under section 143(3) of the Income Tax Act, 1961 (the "Act''). 2. The sole ground raised by the revenue in this appeal is that the Ld. CIT(A) erred in upholding the claim of the assessee of depreciation @60% on inverter batteries ignoring the fact that inverter batter .....

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..... d CIT vs. Orient Ceramics & Industries Ltd. (2011) taxmann.com 417 (Del), the Ld. CIT(A) held that depreciation @60% was allowable and thus allowed the appeal filed by the assessee. 5. The learned DR supported the order passed by the AO. 6. We have perused the relevant material on record. The short question for adjudication in the instant case is whether the batteries which are used along with UPS and which form system for power back up in case of power failure qualify for depreciation @60% or not. We find that a similar issue arose before the Hon'ble Delhi High Court in the case of BSES Yamuna Powers Ltd.(supra). The issue was whether the Tribunal erred in law in allowing depreciation to the assessee @60% on computers accessories and .....

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..... ed by the Revenue is dismissed." 6. We are in agreement with the view of the Tribunal that computer accessories and peripherals such as, printers, scanners and server, etc., form an integral part of the computer system. In fact, the computer accessories and peripherals cannot be used without the computer. Consequently, as they are the part of the computer system, they are entitled to depreciation at the higher rate of 60 per cent." 6.1 Also similar issue has been dealt in Orient Ceramics & Industries Ltd. (supra). The issue was claim of depreciation on UPS by the assessee @60% whereas the AO had allowed it @25%. The Hon'ble High Court followed the judgement in BSES Yamuna Powers Ltd. (supra) and allowed depreciation @60% on such .....

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