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TMI Blog2020 (1) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of depreciation on office equipments in favour of the assessee - Depreciation @ 15% allowed on Office Equipments - ITA Nos.1795,1796,1797/Chny/2018 - - - Dated:- 6-12-2019 - Shri George Mathan, Judicial Member And Shri S. Jayaraman, Accountant Member For the Appellant : Mr.Ananddev Kumar,Advocate For the Respondent : Ms.R.Anita J.C.I.T, D.R ORDER PER S.JAYARAMAN, ACCOUNTANT MEMBER: The assessee has filed the above three appeals against the common order of Commissioner of Income Tax (Appeals)-I, Chennai, in ITA Nos 118/CIT(A)-1/2014-15, 172/CIT(A)-1/2015-16 174/CIT(A)- 1/2016-17 dated 21.03.2018, for the assessment years 2011-12,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue s appeal, upheld the directions issued by the Ld.CIT(A) to the AO to allow depreciation @ 15% on office equipment. The Ld. Authorized Representative of assessee submitted that the assessee made the following submissions before the Ld.CIT(A) :- The appellant being a stock broker having computer network covering locations across the country, the UPS batteries, Air-conditioning, Fire extinguisher, stabilizer, telephone system and different telephone equipments, exhaust fans are part of this network and can never be called under Electrical Installations . As the appellant has already filed the details of office equipments for all the Asst. Years covered in the above appeal, i.e. AY.2011-12, 2012-13 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rk, which need to work uninterruptedly 24/365 and more particularly during market time and they are part of Computer network and hence, they cannot be categorized as Furniture Fittings and Electrical Fittings. Similarly, telephone systems and telephone equipments can never be electrical fittings. Therefore, they are categorized as Plant Machinery. Further, the definition of Plant is wide enough to cover these items like Air-Conditioners, exhaust fans, stabilizers, telephone systems, different phone equipments etc. Televisions are required for live market information and hence, can never be categorized as Electrical fittings as all the items forms part of Computer network and consequently, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the Assessing Officer has restricted the depreciation and the excess depreciation claimed by the assessee was added to the total income of the assessee. 28. The assessee carried the matter in appeal before the ld. CIT(A) and after considering the submissions of the assessee, the ld. CIT(A) directed the Assessing Officer to allow depreciation at 15% on office equipments. 29. On being aggrieved, the Revenue is in appeal before the Tribunal. 30. We have heard both sides, perused the materials on record and gone through the orders of authorities below. Against the restriction of depreciation on office equipments from 15% to 10% by the Assessing Officer, the assessee has submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be in order. He also observed that as per Appendix-I to Rule 5 of Income Tax Rules, 1962, Block III(i), the depreciation rate is 15% for office equipments. Depreciation rate of 10% is applicable for Furniture and Fittings falling in Block II to the above Appendix-I. Office equipments obviously and apparently falling under Block III are entitled to 15% depreciation rate. Accordingly, he directed the Assessing Officer to allow the depreciation @ 15% on Office Equipments. In view of the above findings of the ld. CIT(A), we find no reason to interfere with the order passed by the ld. CIT(A) on this issue. Thus, the ground raised by the Revenue is dismissed. Since the Co-ordinate Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X
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