Appellant
under section 40(a)(i) of the Act while computing its total income as per the
return of income, leading to double ... amount.
3.9.2 erred in not allowing depreciation @ 60% on the above payments
applicable to computer software in accordance with the provisions of section
software given in New Appendix I of
Income Tax Rules, computers including computer software were
eligible for 60% depreciation ... says that computer
included computer software. Note 7 of the Appendix, defines computer
software as any computer
requires that where a company owns purchased
software as well as self-created software, such self-created software
must be shown separately. In the present ... computer software' and the same has been separately
disclosed in the Fixed Assets schedule along with the
depreciation/amortization rate and also
held that in
case of software which can be used perpetually (e.g., Operation system
software like Windows, Application software like MS Office), the
same ... software
expenditure to ascertain the life and nature of computer software. With
respect to the alternative contention of depreciation rate
rightly treated
expenditure on acquiring computer software as expenditure of
capital nature and rightly allowed depreciation as per rules.
8. The fact ... rightly treated
expenditure on acquiring computer software as expenditure of
capital nature and rightly allowed depreciation as per rules."
25. In present
computer was
purchased along with enabling software, then both computer as well as
software would be eligible for depreciation @60%. However ... purchase of software license as a revenue expenditure, under the head
"Repairs - Computers - Others", as under:
REPAIRS - COMPUTERS - OTHERS
erred in not allowing the depreciation on software expenses
capitalized in the books of account under the head "Software Products". The
learned ACIT ... business of development of computer
software, therefore adopt different method of accounting for software
development expenses during the period of its development till
which are attributable to the delivery of
software outside India; and expenditure of Rs.28,18,006/-
incurred towards travelling and conveyance holding ... outside India while
computing deduction u/s 10A of the Act.
iv. In addition to the above disallowances, depreciation at the
rate
academic filed like on educational expenses like salary
to Teachers, stationary, workshop expenses, computer education etc. Ld.
AO had rather failed to distinguish
Hindustan Computers Ltd., in fact, the payment was made for outright sale of 'computer software' which is used ... treated the expenditure on acquiring the computer software as expenditure of capital nature and rightly allowed depreciation as per rules.
42. A similar
