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Showing contexts for: computer includes computer software in Mahindra & Mahindra Financial Services ... vs Assessee on 11 July, 2012Matching Fragments
18. Ground No. 3 relates to treatment of software license as intangible assets and not as an integral part of computer. Thereby allowing depreciation at the rate of 25% instead of the claim of 60%.
19. While scrutinizing the details filed by the assessee, the AO found that the software licence is in the nature of right to use licence and hence form part of intangible assets qualifying for the depreciation at the rate of 25%.
20. Before the Ld. CIT(A) the assessee submitted that with effect from assessment year 2003-04 in Appendix 1 (Rule 5 of the I.T. Rules) "Table of rates at which depreciation is admissible: at Part A (III)(5) has been changed from "Computer" to "computer" including computer software". Note 7 to the table defines computer software as any computer programme recorded on any disc, tape, perforated media or other information storage device. The software used by the assessee falls within the aforesaid definition of computer and hence will form part of computer.