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Showing contexts for: computer includes computer software in Dcit Cir 7(3)(2), Mumbai vs Piramal Enterprises Ltd, Mumbai on 15 January, 2020Matching Fragments
AO and direct him to follow the directions given by the Tribunal for AY 2008-09 and 209-10, while adjudicating the issue.
14. The next issue that came up for our consideration from ground No. 4 of assessee appeal is disallowances of claim of depreciation on additions to computer software of Rs. 2,82,05,985/-. The facts with regard to the impugned disputes are that during the course of assessment proceedings, the Ld. AO noticed that the assesee had incurred software expenses on up gradation of its existing software namely MFGPRO, MS-office, etc and claimed depreciation @ 60% as applicable to computer software. The Ld. AO was of the opinion that as per Rule 5 of the I.T.Rules, 1962 only computers, including software were eligible for depreciation @ 60%, when the computers were purchased along with software. In case, the software is purchased separately, then the same would be an acquisition of intangible assets as envisaged in part- B of depreciation schedule and such intangible asset is entitled for depreciation @ 25%. Accordingly, disallowed excess depreciation claimed by the assessee.