Income-tax Rules only computers and computer
software are eligible for depreciation of 60% the same
cannot be extended to computer ... Rules 60% depreciation is
allowable only on computer and computer software and
not on computer peripherals and accessories
respect of claim
of business promotion, computer software expenses and depreciation.
3. Brief facts are that the assessee is engaged in the business ... questioned about the expenses
incurred in relation to business promotion; computer software depreciation.
AO received information from Investigation Wing, Delhi, in the form
record. The assessee has incurred software expenses for
upgrading the software programmes like back office software,
debt market software, etc., relating to its business ... depreciation on
computers including computer software @60%. From this, they
have inferred that the computer software is nothing
case, the composite computer software
of dailypioneer.com is a 'computer software' entitled for depreciation ... computer
software.
15. On this issue, AO held that only the computers and computer
software are eligible for depreciation
facts
of the case in directing to allow depreciation on
computer software which was not claimed in the return of
income.
4.1. Following ... case, the Assessing Officer has
disallowed the claim of depreciation on computer software. It
was contested before Learned CIT(Appeals) ,who has referred
order without
establishing as to how allowing depreciation on computer software @
60% which is in accordance with the clear provisions of law makes ... computer software, and effective
from A.Y. 2003-04. Computer software has to be treated as part of
computer
machinery and allowing depreciation at 15%
rather than depreciation rate of 60% applicable to
computer and computer software.
5. That ... unpaid service tax 31,81,878/-
iv) Depreciation on computer peripherals 5,42,487/-
3. So as it relates to the addition made
Amendment of the Rules, 2002 thereby
3
allowing 60% depreciation on computer software. Since AO had
already allowed depreciation, he confirmed the disallowance ... amendment in Appendix I which allows
depreciation at 60% on software along with the computer, which
means this item has to be treated
depreciation on computer
peripherals/accessories ignoring that as per the IT Rules 60%
depreciation is allowable only on computer and computer ... claimed depreciation @ 60%
on computer accessories and peripherals. The AO, however, observed that
only computers and computer software
Computer Lab, Hardware, Networking Software, Uninterrupted Power
Supply etc.) and Computer Education Services (Faculty, Curriculum,
Courseware, Testing and Certification, Teachers Training ... request for proposal for supply and installations of
hardware, software etc. and for the Computer Education Services noticed
above.
4. The said
