2014 (1) TMI 1888

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..... r as ATMs are concerned, the Tribunal on finding of fact concluded that ATM cannot function without the help of computer and would be a part of the computer used in the banking industry.ATM was a computer equipment and depreciation 60% was allowed. So far as the use of software is concerned, the Tribunal records a fact that the evidence of the use of the software on 31/3/2008 was produced before the Tribunal. Thus, the Tribunal held that depreciation @ 30% on software was rightly claimed. - Decided against revenue.
Shri R.C. Sharma, Accountant Member And Shri Vivek Varma, Judicial Member Appellant by: Shri M L Perumal Respondent by: Shri M C Naniwadekar ORDER Vivek Varma, The instant appeal is filed by the department against th .....

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..... ers as submitted by the AR, we think it appropriate to reproduce the order of the Hon'ble Bombay High Court, to put the objections of the Department to rest. The order of the Hon'ble Bombay High Court in ITA(L) No. 1243 of 2012 reads as under: "In this appeal by the revenue for assessment year 2008-09, following questions of law have been raised for consideration of this court. a) Whether on the facts and circumstances of the case the ITAT was right in holding that depreciation on UPS is allowable @ 60% ignoring the fact that UPS is an electrical appliance for temporary supply of electricity therefore is in nature of plant and machinery and therefore, depreciation should be provided @ 15%? b) Whether on the facts and circumstances of .....

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..... ear 2008-09. Consequently the excess claim of depreciation made by the respondent assessee was disallowed. 4) In appeal the CIT (Appeals) upheld the findings of the Assessing officer. 5) In second appeal, the Tribunal by its order dated 14/3/2012 held that UPS is an integral part of the computer system and regulate the flow of the power to avoid any kind of damage to the computer network due to fluctuation in power supply which could lead to loss of valuable data. The Tribunal relied upon the decision of the Delhi High Court dated 20/1/2011 in the matter of CIT vs Orient Ceramics and Industries Ltd. in which UPS was held to be the part of the computer system and depreciation at 60% was allowed. Similarly, so far as ATMs are concerned, t .....

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