9911796707
TMI Blog2023 (4) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... ter software @60% - Appeal filed by the assessee is allowed. - ITA No. 2998/Mum/2022 - - - Dated:- 23-2-2023 - SHRI KULDIP SINGH ( JUDICIAL MEMBER ) AND SHRI S RIFAUR RAHMAN ( ACCOUNTANT MEMBER ) For the Assessee : Shri Nand Kishore Ms. Vyoma Dalal For the Department : Shri Manoj Kumar Sinha, (Sr. AR) ORDER PER: KULDIP SINGH (JM): The Appellant, Axis Finance Limited (hereinafter referred to as the 'assessee') by filing the present appeal, sought to set aside the impugned order dated 29/09/2022 passed by the National Faceless Appeal Centre (NFAC),Delhi [hereinafter referred to as the 'CIT(A)'] qua the assessment order for Assessment Years 2016-17 on the ground that:- NFAC has erred in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der passed by the lower Revenue Authorities in the light of facts and circumstances of the case and the case law applicable thereto. 5. From the facts and circumstances of the case and ground raised by the assessee, sole question arises for determination in this case is, as to whether assessee is entitled for depreciation on computer software @60% classifying the computer software as computers and computer software, falling within the block of plant and machinery . 6. At the very outset, Ld.AR for the assessee contended that this issue has already been decided in favour of the assessee by the Hon ble Madras High Court in the case of Compute Age Management Services (P) Ltd (2019) 109 taxmann.com 134 (Madras) and by the co-ordinate be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fee, franchise or any other business or commercial right of similar nature. Therefore, the question that arises is the license obtained by the assessee would fall in the definition of computer software so as to make it eligible as tangible asset and then depreciation rate at the rate of 60% will apply. If it is a license only then naturally it would be intangible assets eligible for depreciation at the rate of 25%. We now find that the issue is squarely covered in favour of the assessee by the decision of Hon'ble Madrass High Court in the case of Computer Age Page | 6 IITA No. 1032/Mum/2021 M/s Arkema Chemicals India P. Ltd.; AY 17-18 Management Services (P.) Ltd. [2019] 109 taxmann.com 134 (Madras)/ (2019 (7) TMI 1153 - MADRAS HIGH COU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppendix I, which deals with knowhow, patents, copyrights, trademarks, licenses, francises or any other business or commercial rights of similar nature. 8. In this view of what has been discussed above and following the order passed by co-ordinate bench of Tribunal, we are of the considered view that the Ld.CIT(A) has erred in denying the claim of depreciation made by the assessee on computer software @60% because assessee is entitled for depreciation on computer software, which is part of the computer @60%. The co-ordinate bench of the Tribunal in in case of M/s Arkema Chemicals India P Ltd (supra) also held that software licence acquired by the assessee was in the nature of application software and is eligible for depreciation @60%. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
