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Showing contexts for: computer includes computer software in Sundaram Finance Limited, Chennai vs Acit, Circle-A. Ltu, Chennai on 28 June, 2024Matching Fragments
18. Depreciation on Computer Software :
18.1 The assessee has claimed depreciation of Rs.48,48,510/-
@60% on computer software purchased of Rs.96,04,553/- as an expenditure. The AO, restricted the depreciation to 25% and thereby made a disallowance of Rs.28,98,298/- during the AY 2010-11.
18.2 The ld.CIT(A) has deleted the disallowance as the depreciation on computers including computer software are eligible @60% of depreciation.
18.3 We find that there is no infirmity in the order of the ld.CIT(A) in deleting the disallowance of depreciation made by the AO. The admissibility of depreciation @60% for computers including computer software has been clearly mentioned inentry no. 5 under the head 'machinery and plant' of the table of the rates at which the depreciation is admissible (new appendix-I u/r. 5 of the I.T. Rules, 1962). This issue has already been endorsed by the coordinate bench of Chennai Tribunal in the case of ACIT vs TNQ Books and :-22-: ITA. Nos:07, 08, 09, 26, 27, 28, 79, 80 & 81/Chny/2022 Journals Pvt Ltd in ITA No. 330/Mds/2016. Therefore, respectfully following the decision of the Jurisdictional bench of the ITAT, we hold that allowing the appeal of the assessee for claiming the depreciation at 60% by the ld.CIT(A) is in accordance with law and does not require interference. Hence, the ground of the revenue is dismissed.