9911796707
TMI Blog2017 (4) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... 25%. We find that the relevant assets are either computer or computer software as certified by charter engineer vide his report dated 12-11-2014 certifying these assets as computers. As the issue is covered in assessee s own case for AY 2005-06 [ 2016 (7) TMI 1671 - ITAT MUMBAI] also and in the given facts and circumstances of the case, we confirm the order of CIT(A) allowing depreciation on computers at the rate of 60%. The appeal of Revenue is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ifying assets as computer vide his letter dated 22-12-2014 and assessee's own case for AY 2005-06, wherein identical issue was considered by CIT(A) allowed the claim of deprecation at the rate of 60% by observing in para 8 to 12 as under: - "8. I have considered the facts of the case, submissions and contentions of the assessee as also order of the AO. While completing the assessment, the AO rejected the claim of the. assessee, on the grounds that these editing equipments were not computers as a whole, but it is one part fitted in it. Therefore, he chose to disallow the claim of the assessee. Before proceeding further, it will be relevant to discuss the nature and specifications of these assets and whether the same amounts to 'compute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... censed application software and datacine licensed application software for film scanning and storage By this software, the movies can be transferred at 30 frames per second Computer Software along with computer systems. 9. From the very nature of these assets, it is quite clear that they are either in nature of computer server or computer software or application system, and a person with basic knowledge of computers will understand that these assets are apparently in nature of computer hardware or computer software. The Chartered Engineer, Shri Kumar Subramaniam, has clearly certified these assets as computers, vide his report dated 22/12/2014. Similarly, the in house expert, Shri Parminder Singh Chadda, has also certified these asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n specialized graphic processors, with dedicated memory, for handling the computations needed to display complex graphics, such as for three-dimensional simulations and games. Auxiliary data storage is usually provided by an internal hard disk and may be supplemented by other media such as floppy disks or CD-ROMs. Peripheral equipment includes input devices (e.g., keyboard, mouse) and output devices (e.g. monitor, printer), as well as the circuitry and cabling that connect all the components. Generations of computers are characterized by their technology. Firstgeneration digital computers, developed mostly in the U.S. after World War II used vacuum tubes and were enormous. The second generation, introduced C. 1960, used transistors and were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , UPS will also be an integral part of the computer system, entitled for deduction of depreciation at the rate of 60 per cent. Similarly, in the case of Sundaram Asset Management Co. Ltd. vs. DCII, Hon'ble RAT, Chennai, held that the assessee is entitled to claim depreciation at the rate of 60% on UPS. While holding so, the Hon'ble Tribunal observed that it has been repeatedly held in various decisions of the Tribunal that depreciation at the rate of 60% has to be provided on UPS, treating it to be the part of computer, including the decisions in the cases of Haworth (I) P. Ltd. and Macawber Engineering System (India) P. Ltd. 12. Identical issue had come up for consideration before me in assessee's own case for A.Y. 2005-06, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mum/2014 for AY 2005-06, although the issue was on reopening but Tribunal has given a finding on merits also in Para 6 and the relevant portion of the Para 6 reads as under:- "………………In the present case, apart from the fact that we observe no lapse on the part of the assessee to disclose fully and truly all the material facts necessary for the computation of its income, and neither has any been pointed to us, the claim has been subject to verification by the A.O. in the original proceedings. Further, though there is no discussion by him in the assessment order, he can only be considered as conscious and alive to this claim as the assessee had clearly bifurcated the editing equipments into two compo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
