depreciation on computer software for the reason that the assessee has not
deducted tax at source on computer software and held that ... made towards depreciation
on computer software on the ground that no TDS was deducted on the
payments made towards computer software
therefore it requires continuous
upgrading.
17. Heard rival submissions, depreciation on computer software is
no more res integra as this issue is settled ... software was used along with
computer and when their functions were integrated with computer,
such hardware or software would be termed
requisite qualifications for
appointment to the post of Post Graduate Teacher (PGT) (Computer
Science) (Male) [Post Code ... applicant submit
submitted that he seeks to
challenge the Post Graduate Teacher (Computer Science) Recruitment
Rules, 2014,, issued by the Directorate of Education
computers including computer software. Note-7 states that
computer software means any computer programme
recorded ... Appendix I, which
states that computers including computer software are
entitled to depreciation at 60%. Note 7 of the Appendix
defines
Disallowance of depreciation on software
12.1 The assessee claimed depreciation @ 60% on 'Software'. The Ld.
AO held that as per depreciation schedule Rule ... computers including software'. The word 'including'
implies that only computer systems having inbuilt software i.e., computer
computer software. When the statute specifically provides for
treating the computer software as a capital asset and
allowing depreciation thereon ... computer software. When the statute specifically provides for
treating the computer software as a capital asset and allowing
depreciation thereon
depreciation prescribed for computer software. This clearly showed
that expenditure for computer software, was in the nature of capital
outgo. Omission ... during the period. The Statute
itself allows 60% of depreciation on computer / software which
shows that the enduring benefit need not be spread
computer software. The AO
treated the servers as not part of the computers but treated it as Plant &
Machinery. Depreciation ... Software' and are eligible for depreciation at the
rate of 60%; Therefore depreciation on servers will be allowed at the rate
applicable to computers
With regard to depreciation on computer, the learned CIT(A) noticed
that the computer/computer software was not owned ... assessee company.
18. Similarly, with regard to upgradation of computer software and
depreciation claimed thereon the learned counsel for the assessee submitted
that
applicable to 'Computers including computer software' as claimed by
the Appellant.
5.RATE OF DEPRECIATION ON COMPUTER ... regarding depreciation on software.
9.1 The assessee claimed depreciation on software @ 60%. However, the AO
allowed the depreciation at 25% on software. The DRP confirmed
