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28. We have heard the learned Counsel and the learned DR. We notice from the depreciation schedule applicable for A Y 2002-03 that there is no specific heading for software expenses as part of computer. The schedule in Part-A (III)(2B) contains only computers at 60%. With effect from AY 2003-04 onwards Part III (5) was modified as under:

"(5) Computers including computer software 60% (see Note 7 below Table) ".

Note 7 states that the computer software means any computer programme recorded on any disk, tape or any other information storage device. As seen from the facts of the case, assessee has purchased specific software which was not supplied along with the computer. Therefore, the purchase of specific software for use in the business cannot be included as part of computers and since there is no specific item of computer software in the depreciation schedule for the impugned A Y 2002-03, we are of the opinion that AO is correct in treating the computer software as a license and allowing depreciation at 25%. As stated earlier, assessee also has ITA Nos.6762 7135 of 2005 and CO No 186 of 2006 HSBC Securities & Capital Markets India Ltd not contested the issue before the CIT (A) with reference to the rate of depreciation. In view of this, we are of the opinion that AO has correctly determined the rate of depreciation at 25% for this year. The reliance by assessee on the depreciation schedule in the later year cannot help its case as the said 60% on computer software has become part of the depreciation schedule from A Y 2003-04 onwards.