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"11. We have considered the rival submissions at length in the light of material placed before us and precedents relied upon. The chief question which falls for our adjudication is whether routers and switches are part of computer or not for the purposes of depreciation. Sec. 32(1) provides that where assets are owned wholly or partly by the assessee and used for the purpose of business or profession, deduction shall be allowed. Clause (ii) of sub-s. (1) provides that in case of any block of asset, the deduction shall be allowed at such percentage on the WDV thereof as may be prescribed. Rule 5(1) stipulates that depreciation in respect of any block of asset shall be calculated at the percentages specified in the second column of the Table in the 6385&6332/09-Star India Appendix I of these rules on the WDV of such block of asset as are used for the purpose of business or profession of the assessee at any time during the previous year. Appendix I, as applicable to asst. yr. 2002-03 under consideration, has different blocks of assets. We are concerned with the block of assets of machine and plant. General rate of depreciation provided is 25 per cent against item 1 in respect of machine and plant other than those covered by specific sub-items. Sub-item (2B) is "computers" and the rate of depreciation prescribed is 60 per cent Similarly for the asst. yr. 2003-04, which is also under consideration, the general rate of depreciation on machine and plant, other than those covered by specific sub-items, is 25 per cent. Sub-item (5) is "computers including computer software" on which rate of depreciation has been prescribed as 60 per cent. It is only with effect from asst. yr. 2003-04 that computer software has also been included in the category of computers for the purposes of allowing depreciation at the higher rate of 60 per cent. Thus, whereas upto asst. yr. 2002-03 only computers were eligible for depreciation at the rate of 60 per cent from asst. yr. 2003-04, the benefit of such enhanced depreciation rate has been extended also to computer software. Note No. 7 to the Appendix I, as applicable from asst. yr. 2003-04, defines "computer software" to mean any computer programme recorded on any disc, tape, perforated media or other information storage device. No definition of 'computers' has been given in the Appendix, unlike that of computer software. It is nobody's case that the routers or switches are computer software. Thus we shall restrict ourselves in understanding the meaning of the expression 'computers', in the facts and circumstances of the case.

15. In some of the cases decided by the Tribunal, reliance has been placed on the definition of "computer" given by the Information Technology Act, 2000, s. 2(i), which is as under :

"(i) 'Computer' means any electronic, magnetic, optical or other high speed data processing device or system which performs logical, arithmetic and memory functions by manipulations of electronic, magnetic or optical impulses, and includes all input, output, processing, storage, computer software or communication facilities which are connected or related to the computer in a computer system or computer network."

31.3 Coming to the routers, it is seen that these can also be used with a television and in such use, no computer is required. These are also called TV routers. Similarly, "Internet Service Providers", give connectivity, by installing a router in the premises of the persons/institutions availing the internet connection. In these cases the router is not used along with a computer. In such a situation, it would be a "standalone" equipment. In such cases this cannot be considered a component of a computer or computer hardware. Giving another example, a computer software can be used in many devices including washing machine, television, telephone equipment etc. When such software is used in those device, it integrates with that particular device. The predominant function of the device determines its classification. Only if the computer software, resides in a computer, then it becomes a part and parcel of a computer and, as an long as it is an integral part of a computer, it is classified as a 'computer'.