Indian Kanoon - Search engine for Indian Law

CORPORATE TAX GROUNDS

4.RATE OF DEPRECIATION ON COMPUTER HARDWARE: Rs 14,65,292 That on the facts and circumstances of the case and in law, the learned AO erred in proposing and the Hon'ble DRP erred in granting depreciation on printers, scanners and Electronic Token Display System at the rate of 15 percent being the rate applicable to other machinery and plant instead of 60 percent being the specific rate applicable to 'Computers including computer software' as claimed by the Appellant.

5.RATE OF DEPRECIATION ON COMPUTER SOFTWARE: Rs 6,80,185 That on the facts and circumstances of the case and in law, the learned AO erred in proposing and the Hon'ble DRP erred in granting depreciation on computer software at the rate of 25 percent being the rate applicable to Intangibles instead of 60 percent being the rate applicable to Computers including computer software' as claimed by the Appellant.

10.1 Before us the ld. AR has submitted that the condition for allowing depreciation is use of asset for business purpose, and, not the number of employees. He has further contended that while giving effect to the directions of DRP, the AO has disallowed the depreciation not only of 18 software licences but on the hardware and other peripherals, which were purchased by the assessee from third parties. He has referred to para-6 of the DRP whereby the AO was directed not to allow proportionate depreciation on 18 software licences out of 169 licences, cost of which was allocated by HLAG to the assessee. Whereas while giving effect to the said directions of the DRP, the AO disallowed the proportionate cost of additions to computer hardware assets including scanner, printer and electronic token display as well as computer software asset purchased by assessee from third party. The ld. AR has submitted that even as ITA Nos.7771/12 & 1374/14 Hapag Lloyd India Pvt. Ltd.