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TMI Blog2016 (6) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the computer software alongwith computer has to be treated as capital asset and Higher rate of depreciation @60% has been allowed based on the life and usage of computer software. Decided in favour of assessee. - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER For the Appellant : Shri. P. Radhakrishnan, IRS, JCIT. For the Respondent : Shri. V. Ravichandran, C.A. ORDER PER G. PAVAN KUMAR, JUDICIAL MEMBER: The appeal filed by the Revenue is directed against order of the Commissioner of Income-tax (Appeals)-11, Chennai in ITA No. 427/2014-2015/CIT(A)-11, dt 26.11.2015 for the assessment year 2012-2013 passed u/s. 143(3) and 250 of the Income Tax Act, 1961 (herein after referred to as the Act ). 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... total income of Rs. 16,80,88,230/- vide order u/s. 143(3) of the Act dated 18.03.2015. Aggrieved by the order, the assessee filed an appeal before us. 4. In the appellate proceedings, the ld. Authorised Representative argued on the grounds and explained the facts an reasons on claim of depreciation on software license. The assessee company purchased software license and added to the opening written down value (WDV) of Block of computers and computer software and license as on 01.04.2011 and the same being part of the Block cannot be segregated and entitled for depreciation at 60% and not the rate applicable to the intangible assets. The ld. Commissioner of Income Tax (Appeals) considered the grounds, arguments, facts of the case, findings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been classified as tangible asset under heading plant and would be entitled to depreciation at the rate of 60% w.e.f. 01.04.2013 (111 ITD 112 Delhi SB). Hence, the disallowance made by the Assessing Officer is deleted and the ground is allowed. and deleted the addition of excess claim of depreciation and allowed the appeal. Aggrieved by the Commissioner of Income Tax (Appeals) order, the Revenue has assailed an appeal before Tribunal. 5. Before us, the ld. Departmental Representative reiterated the facts and argued the grounds and relied on the findings of the ld. Assessing Officer were computer and computer software license are different as the software takes the character of tangible asset were as software license is a intangible asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided by the Co-ordinate Bench in favour of the assessee in assessee s own case in ITA No. 1368/Mds/2015, for the assessment year 2010-2011, dated 20.1.20166, where the Tribunal observed in para No 8 as under:- 8. Ground No. 2 - Restriction of excess depreciation claimed on software:- During the course of assessment proceedings it was observed by the learned Assessing Officer that the assessee had claimed depreciation on purchase of software of Rs .1,28,45,163/- @ 60%. However, following the decisions in the case of Sony India Vs. Additional. CIT (ITAT Delhi) reported in 56 DTR 156), the Ld. Assessing Officer allowed depreciation @ 25%. On appeal, the learned CIT relying on the decision in the case of Amway India Enterprises Vs. DCIT held th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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