Document Fragment View
Fragment Information
Showing contexts for: computer includes computer software in Beckman Helix Consulting Pvt. Ltd., New ... vs Department Of Income Tax on 19 October, 2016Matching Fragments
9. Deletion of disallowance of depreciation on UPS:
During the assessment year 2008-09, the assessee company has purchased UPS equipment amounting to Rs. 1,26,734 that has been included in the block of 'Machinery and Plant' under the head 'Computer including computer software', in accordance with the provisions of section 32 of the Act read with Rule 5 of the Rules. Accordingly, the assessee has claimed depreciation @ 60% on the UPS.
9.1. However, the AO held that UPS is separate equipment which can work in conjunction with a computer but can also work independently with other electrical/ electronic equipments. The AO held that the UPS is not part of computer system eligible for depreciation @ 60%, rather is a part of 'Machinery and Plant' which is eligible for depreciation @ 15% and accordingly disallowed Rs. 28,515/- as excess depreciation claimed on UPS.