9911796707
TMI Blog2017 (4) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... e only issue in this appeal of Revenue is against the order of CIT(A) in allowing depreciation at the rate of 60% on computers and computer based items instead of 25% allowed by AO. For this Revenue has raised following grounds: - "Whether on the facts & in the circumstances of the case and in law, the Ld. CIT(A) erred in treating the editing equipments based on computer as computer without considering the fact that the addition towards excess claim of depreciation for A.Y.2004-05 was confirmed by the Ld. CIT(A) wherein it was held that items claimed as computers are merely supporting the computer rather than the computer itself. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in allowing depr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for consistency in performance in case of network load or traffic problems Computer hardware 2. Colour Grading system Flimlight Digital Film technology World's most powerful colour grading and finishing system for film, TV, Commercial and broadcast. It is a software used for colouring and grading used in films The computer system and software used for colour enhancement Computer system and computer software 3. AVID Media Compower Software Media Tools (Rs.10,92,000/-) Media Compower software is a type of computer software application as non-linear editing system (NLE) produced by AVID technology and was released in 1989 on the Macintosh II. It is a digital nonlinear accelerator computer system for video e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly a personal computer or a laptop or a mainframe computer. In fact, any microprocessor-based device may be termed as computer. The word 'computer' has been defined by various -organizations, which is discussed as under: 9.1 As per the Information Technology Act, 2000, 'computer' is defined as under:- "'Computer' means any electronic magnetic, optical or other high-speed data processing device or system which performs logical arithmetic, and memory functions by manipulations of electronic, magnetic or optical impulses, and includes all input, output, 6processing, storage, computer software, or communication facilities which are connected or related to the computer in a computer system or computer network." 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urth-generation computers. From the above discussion, it is quite clear that computer includes all input-output devices as also computer software and all communication facilities connected to computer network. Further, as per Income-Tax Rules,1962, Appendix-I, containing rates of depreciation for different assets, 'computers including computer software' will have a depreciation rate of 60%, with effect from 1/4/2003. 10. The learned AR in this regard also mentioned, that the Hon'ble ITAT has allowed appeal of the assessee for A.Y. 2004-05, under identical circumstances. However, on careful perusal of the order, it is noticed that the Hon'ble ITAT had allowed the appeal on legal grounds, holding that there was no valid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 1/7/2014 is reproduced as under: -------------- ------------------------- Identical issue is involved in the present year also. Therefore, for the detailed reasons discussed by me in my order 1/7/2014 in the case of the appellant for AY. 2005-06, I direct to allow depreciation at the rate of 60% on the assets in question and delete the addition of Rs. 3,15,95,93/- made in this year. These grounds are, accordingly, allowed." Aggrieved revenue is in second appeal before us. 4. We have heard the rival contentions and gone through the facts and circumstances of the case. We find that the assessee has divided these assets under three different heads in the schedule of assets i.e. the editing equipments computer based, editing equi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. CIT(A) has allowed the reopening on the basis that there is no evidence to show that the assessee has furnished all the necessary details, including bills and vouchers for purchase of the equipments or their specification or technical expert reports, etc. during the course of the original assessment proceedings, so that the A.O. forming a view that the assets under reference may not qualify to be computers, cannot be entirely faulted. We cannot agree. There is, as afore-stated, firstly, no sound reason with the A.O., but merely a reason to suspect that the assessee's claim may not be correct. Two, the assessee had furnished all the details as were called for during the original proceedings, including details of computer based equipme ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
