Document Fragment View

Matching Fragments

electronic medium in which the software is stored is by itself goods, then the assessee who acquires the same, acquires a tangible asset. Computer software has not been defined defined in the Act, but in Note 7 to Appendix I to the IT Rules, it has been explained to include computer program recorded on any disk, tape, perforated media or other information storage device. Therefore computer software in canned tangible asset by itself. These are covered in form is goods and a tangible Note 7 to Appendix I to the IT Rules and eligible for depreciation @ 60%.

8.1 We have heard rival submission of the parties on the issue in T Ld. CIT(A) dispute and perused the relevant material on record. The in view of the decision of the special bench of the Tribunal in the case of Amway India Enterprises Vs DCIT (2008) 114 TTJ 476 (SB) allowed the claim of the assessee of depreciation at the rate of the 60% on computer software being a tangible property.

Further,we ncome tax Rules, 1962, we find that under rule 5 of the Income depreciation on any block of assets is to be calculated, at the percentage specified in the second column of the table in the appendix I to those rules, on the written down value of such block of assets. From assessment year 2006 07 onward new Appendix I 2006-07 has been made effective. In the part A of said appendix under the assets list of assets has been prescribed under head "tangible assets", sub head of 'Machinery and Plant', at Sr three sub head. Under the su item of computers including computer software has been No. 5,item be prescribed for depreciation rate of 60% which has been amended to 40% with w effect from 01/04/2017. Since assessment year before us is 2012-13, therefore during relevant period M/s Ogilvy and Mather Pvt. Ltd. 14 ITA Nos. No. 1637 & 1638/M/2021 &Ors.