Income Tax Appellate Tribunal - Bangalore
M/S Kodiak Networks (India) Private ... vs The Assistant Commissioner Of Income ... on 24 September, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
"A" BENCH : BANGALORE
BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER
AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER
ITA Nos. 1403 & 1404/Bang/2018
Assessment years : 2015-16 & 2014-15
M/s. Kodiak Networks (India) Ltd., Vs. The Deputy /Asst. Commissioner
9th Floor, MFAR Manyata Tech Park, of Income Tax,
Greenheart Phase IV, Nagwara, Circle 4(1)(1),
Bangalore - 560 045. Bangalore.
PAN: AACCK 0978J
APPELLANT RESPONDENT
Appellant by : Shri Narendra Jain, Advocate
Respondent by : Shri Siddappaji R.N., Addl.CIT(DR)(ITAT), Bengaluru.
Date of hearing : 29.08.2018
Date of Pronouncement : 24.09.2018
ORDER
Per N.V. Vasudevan, Judicial Member
These are appeals by the Assessee against two orders both dated 8.3.2018 of CIT(Appeals)-4, Bengaluru, relating to assessment years 2014-15 and 2015-16.
2. The only dispute raised in these two appeals by the Assessee is with regard to the rate of depreciation on servers. If servers are regarded as part of computer then depreciation has to be allowed at 60%. The case of the revenue is that servers are not part of computer and have to be regarded as Plant and Machinery eligible for depreciation only at 15%. The Hon'ble Delhi High Court in the case of CIT Vs. BSES Yamuna Power Ltd.
ITA Nos. 1403 & 1404/Bang/2018 Page 2 of 2 358 ITR 47 (Del.) has taken the view that computer accessories and peripherals such as printers, scanners and server etc., form integral part of computer system and hence they are entitled to depreciation at 60%. Following the aforesaid decision, we hold that the Assessee is entitled to depreciation at 60% on servers.
3. In the result both the appeals of the Assessee are allowed.
Pronounced in the open court on this 24th day of September, 2018.
Sd/- Sd/-
( A.K. GARODIA) ( N.V. VASUDEVAN)
Accountant Member Judicial Member
Bangalore,
Dated, the 24th September, 2018.
/ Desai Smurthy /
Copy to:
1. The Appellant 2. The Respondent 3. The CIT
4. The CIT(A) 5. The DR, ITAT, Bangalore.
6. Guard file
By order
Senior Private Secretary
ITAT, Bangalore.