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including computers software. The assessing officer has not accepted the explanation of the assessee stating that once the assessee has treated such application software, being license as intangible assets in its books then the assesse cannot be permitted to treat the same differently for income tax purposes. Therefore, the assessing officer has held that the application software being license are intangible asset and they are eligible for depreciation u/s. 32 of the act @ 25%. Consequently, the assessing officer has disallowed the excess claim of depreciation of Rs. 2,24,464/- added to the total income of the assessee of the assessee. T he assessee has preferred appeal before the ld. CIT(A). The ld. CIT(A) has allowed the appeal of the assessee

5. We have heard rival contentions and perused the material on record. It is noticed that as per rule 5 of income tax rules 1962 depreciation allowance u/s. 32 of the income tax act shall be calculated at the percentage specified in the second column of the table in Appendix 1 effective from assessment year 2006- 07 on wards depreciation is to be calculated @ prescribed in new appendix-1 entry at serial no. 5 of part-III (which deals with rate depreciation on machinery and plant) of the said table referred to computer, including computer software and the rate of depreciation prescribed in the said table against this entry is 60% . As per note 7 below the said table " computer software" means any computer program recorded in any disc, tape, perforated media other information storage device. In the light of the above provision of income tax, we observed that income tax act does not make any difference between the system software and application software, therefore, we justify the decision of ld. CIT(A) in allowing the claim of the assessee of depreciation @ 60% on the computer software. Accordingly this ground of revenue is dismissed.