Rules wherein a rate of 60%
of depreciation on "computers including computer software" has
been prescribed. However ... computer and computer program, SAP software
falls under the block of "computers including computer software
reason that
computer and computer software are two different items of assets. If the Legislature
wanted to allow depreciation ... April 1, 1999, on
computer software, it would have said so specifically by making the provisions
retrospective. Depreciation can be allowed
noticed that Software Expenses for Rs.
28,18,250/- is included in it. The AO was of the view that these software expenses
were Capital ... longer period. However, depreciation @60% is
allowed to the assessee. The assessing officer computed the disallowance as
follows:
Software Expenses claimed
depreciation on ATM at 60% being the rate of depreciation
prescribed under the sub-heading "Computers including Computer Software ... software used in the ATM is also the same software which is used in
the computer. We also find that similar issue
shall accordingly re-compute the depreciation and
also the written down value of the depreciable assets."
5. We have heard the rival ... granting 60% depredation on
computer software that even the legislature considers the life of computer
software as about two years
profits" should not be covered under "computer & computer software".
Instead, this should have been treated as normal ... professional instruments'
cannot be covered under 'Computer & Computer Software'. Those assets
should have been taken as normal
scanner and
router were treated at par with computers by the assessee. Accordingly, the
depreciation on such asset was claimed ... canner and router
are neither computer nor computer software. Therefore these are eligible for
depreciation @ 15% amounting
Fixtures @ 10% Rs. 73,106
Block of Assets computer, computer software ... business:
Asset Description Depreciable Depreciation
Value (Rs.) (Rs.)
Computer 749502 321828
Computer Software 738767 221630
Furniture & Fixtures 436337 38357
Office
Arawali Construction Pvt. Ltd. 259 ITR
30. He also allowed depreciation @ 60% computed at Rs.7,89,480/- and disallowed
the balance expenditure ... enduring benefit are satisfied, the
question whether expenditure incurred on computer software is capital
or revenue has to be seen from the point
itself is not a computer. It runs with the help of computer. But the computer for its operation does ... entitled to the depreciation @ 60% as admissible to the computer. He further submits that the term computer has not been defined
