following the erroneous direction of the DRP in recalculating depreciation
on computer software @ 25% instead of @ 60% as claimed by the
Appellant ... entitlement of the assessee
towards its claim of depreciation on computer software @ 25% instead
of 60% as was claimed by the assessee
erred in treating the capital expenditure on the
computer software development expenses of Rs.49,02,820/- as
revenue expenditure without appreciating ... appreciating the fact that the computer software
& peripherals on which the assessee has claimed depreciation &
60% is in actuality an intangible
that during the assessment
proceedings Ld. A.O allowed depreciation on computer software
claimed @25% as against 60% claimed by the assessee. Aggrieved ... assessee stated that the assessee has
claimed depreciation on computer software @60% since software is
26
KIFS Securities Ltd & Khandwala Integrated Financial
that only
software that is embedded in the computer and comes along with
computer is eligible for depreciation ... reason that computer and computer software are two
different items of assets. If the Legislature wanted to allow depreciation
allowed as a
business expenses on account of depreciation on computer software.
Depreciation @60% is allowed against the similar addition ... income tax act,
software has been clubbed with computers for depreciation purposes and
therefore, software expenses are capital in nature. On the other
brief fact is that assessee has claimed depreciation on computer
software @ 60 per cent. However, the AO has restricted the claim of depreciation ... said table referred to computer, including
computer software and the rate of depreciation prescribed in the said table
against this entry
Ground No.14 is with
regard to claim of depreciation on computer software and
ground Nos.15 and 16 are with respect ... software. We found the claim of depreciation on computer
software is covered by the decision of the Special Bench of
Tribunal
Annexure-A.
Page | 5
Indirect expenses: -
Particulars Amount
(Rs.)
Depreciation (Computer Software) 1809899
Water & electricity expenses 3155486
Security expenses 826867
Property
provides the depreciation @60% on the computer
software and the term 'computer software' has a/so been
denied ... asset is
"computers including computer software'. The meaning of computer
software is also given in note
eligibility of claim of higher depreciation @ 60% eligible to computer or
computer softwares and opined that the aforesaid softwares ... depreciation on computer softwares is
allowable @ 25% being intangible assets and not @ 60% applicable to
computer softwares as claimed. We straightaway
