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TMI Blog2021 (5) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... RALA HIGH COURT] wherein it has been held that mobile phones are not computers and, therefore, depreciation on these mobile phones shall be allowed at the general rate of depreciation on plant and machinery @ 15%. This being the solitary decision on the issue and is binding on us, respectfully following that we uphold that depreciation on mobile phones is allowable @ 15% and not @ 60%. There a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) was justified in upholding the action of the ld. Assessing Officer in allowing depreciation on mobile phones @ 15% instead of @ 60% claimed by the assessee following the decision of Hon ble Kerala High Court. 03. The assessee is a company engaged in the business of purchase and sale of air-time for mobile phones. It filed its return of income on 7.12.2012 at ₹ 1,83,73,910/-. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case. 05. The learned DR submitted that issue is squarely covered against the assessee by the solitary decision of the Hon ble Kerala High Court in the case of Federal Bank Ltd. Vs. ACIT 20 taxmann.com 707 (Ker.) wherein it has been held that depreciation on mobile phones is allowable @ 15% as those are not computers. He, therefore, submitted that this solitary decision has been followed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not @ 60%. However, we may note that there are smart phones which do function equivalent to the computers or much more than a computer, if the functionality of a mobile phone are shown to be more than a communication equipment, perhaps, it may qualify as a computer. However, as no such information is available in the present case, we respectfully follow the decision of the Hon ble Kerala Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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