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18. Arguing on fourth common ground, which is on restriction of the claim of depreciation on software, ld. Authorised Representative submitted that ld. Assessing Officer had restricted the depreciation to 25% against 60% available for computer systems. According to ld.

Authorised Representative, what was acquired were only software license which enabled the assessee to use the applications. According to him, by virtue of definition of software given in New Appendix I of Income Tax Rules, computers including computer software were eligible for 60% depreciation.

Sl.No Description of the Asset 1 Sco Unix 6.0 Enterprise User License 2 Server Licenses and customization charges for insurance process.
3 Server Licenses and customization charges for insurance process.
4 PI Sql Developer/ Single User license 5 PI Sql Developer/ Single User license 6 Vfox Pro 9.0 Office Std 2010 licence 7 Dynamics Nav Final Milestone license 8 Server licenses and customization charges for insurance process 9 Server licenses and customization charges for insurance process 10 Citrus software license basic server licenses 1 11 Server licenses and customization charges for insurance process 12 Server License 13 Server License 14 Server License :- 17 -: ITA Nos.1140, 41 & 42 /2018 15 Server License 16 Cisco-firewall license 17 Window 2008 R2 standard license What we find from the above description is that all these were nothing but items in the nature software or software applications. Entry No.5 coming in III of Part A in New Appendix I clearly says that computer included computer software. Note 7 of the Appendix, defines computer software as any computer programme recorded in any information storage device. We are therefore of the opinion that assessee was eligible to claim depreciation at the rate of 60% on the above items.