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"The original return of income was filed on 31.10.2002. Later on, the revised return was filed by the assessee on 31.03.2004 at an income of ``12,10,34,127/- and order u/s 143(3) was passed on 25.02.2005 at assessed income of ``28,54,17,720/- .
"Section 32 of the Act, provides that in respect of depreciation of buildings, machinery, plant or furniture, being tangible assets, owned wholly or partly by the assessee and used for the purpose of the business or profession, the following deductions shall be allowed. In case of any block of assets, such percentage on the written down value thereof as may be prescribed. Further, as per depreciation table, computers including computers software, depreciation @60% is allowed under the Act and not for the accessories/peripherals."

The perusal of asstt. records for the assessment year 2002- 03 reveals that the assessee company has availed depreciation @60% on additions of fixed assets during the year on all items including UPS, Cables, CD Writers etc. besides computer and software, that was not admissible as other items as computer peripherals/accessories. The items in the list of addition to fixed assets except computers and software fall in the category of part of plant and machinery and depreciation on these items are to be allowed @25%/12.50%(assets used less than 180 days). This has resulted in escapement of income of ```11,65,426/-.