prescribed. Further, as per depreciation table, computers including
computers software, depreciation @60% is allowed under ... Cables, CD Writers etc. besides computer and
software, that was not admissible as other items as computer
peripherals/accessories. The items
which the
computer software is used is again peculiar. General mode is to acquire
computer software on a license. That ... computer, is a tangible asset which by itself cannot function.
The computer can function only with the help of software. Software
view that only computer and
computer software are eligible for depreciation of 60% and the same
cannot be extended to computer ... even computer software
which is installed on computer system supports the computer
hardware and is eligible for depreciation
Explanation -1
on disallowance of claim for depreciation on computer software
acquired ignoring the fact that the claim was made under a
bonafide ... that
the licensed version of the software was acquired and installed
before 31st March and hence had claimed depreciation u/s
31(1)(ii) under
computer software expenditure amounting to Rs. 58,82,239/- was capital
expenditure. The Assessing Officer after treating the computer software ... depreciation @ 60% on the same as
applicable to the computers. On appeal, the C IT(A) held that Computer
Software expenditure
Ima -Pg India Ltd , Mumbai vs Department Of Income Tax on 20 September, 2011
IN
extra depreciation on computer peripherals ignoring that as per the IT Rules 60%
depreciation is allowable only on computer and computer software and not on
computer peripherals and accessories."
46. The matter concerning Ground No.1 is, mutatis mutandis, exactly similar
depreciation @60% on typewriters ignoring that as per the
IT Rules 60% depreciation is allowable only on computer
and computer software
extra depreciation on computer peripherals ignoring that
as per the IT Rules 60% depreciation is allowable only
on computer and computer ... expenses, advertisement expenses, maintenance fees and disallowance of
part of depreciation on computer peripherals. The Assessing Officer also
made an addition on account
expenses of computer software were in the nature of
revenue expenses or under the head capital expenditure.
2.2 As regards depreciation of electrical ... expenses on computer software as capital expenditure and by way
2
ITA NO. 2160/Del/2011
of allowing 10% depreciation on electrical fittings
