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TMI Blog2018 (3) TMI 1633X X X X Extracts X X X X X X X X Extracts X X X X ..... ice. Further as per the Rule, the rates prescribed for computer software is 60% for the relevant assessment year - thus direct the Ld.AO to grant the benefit of depreciation @ 60% for the purchase of design software by the assessee. - Decided in favour of assessee - I.T.A.No.2123/Chny/2017 - - - Dated:- 22-3-2018 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER For the Appellant : Ms. G. Vardhini Karthick, Advocate For the Respondent : Shri N. Madhavan, Addl. CIT ORDER Per A. Mohan Alankamony, AM:- This appeal by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals)-1, Chennai, dated 11.05.2017 in ITA No.76/CIT(A)-1/2015-16 for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6/-. 5. The Ld.AO arrived at such conclusion based on the invoice produced before him as under:- S.No. Description Quantity Rate in $USD Amount in $USD 1 Design Assembly Drawings of Hydraulic Cylinders, Bill of Materials, and Other Components Drawing supplied Whenever necessary 1. A VR Cylinders 2. BL 200 Wheel loader 3. BG- 605 Motor Grader 4. BG 825 Motor Grader 5. BE-220 Excavator 6. BG-405 Motor Grader 6 sets 11,00,000.00 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion @ 60%. While as the Ld.DR relied on the order of the Ld.CIT(A). 7. We have heard the rival submissions and carefully perused the materials on record. On perusing the order of the Ld.CIT(A), we find that he himself has agreed that the purchases made by the assessee company is design software embedded in CD, containing the design etc.. Once the Ld.CIT(A) has himself held the purchase made by the assessee company is a design software, we wonder as to how it cannot be treated as a computer software. The design software embedded in CD containing the design has to be necessarily treated as computer software and the same is clarified in Note 7 of the new Appendix-1 of the Rules which states that computer software means any computer progra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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