would be allowed on computers including
computer software. The said definition to include computer software was
introduced ... distinction
between the computer software perse and the license, wherein the computer
along with computer software is termed
excess depreciation of Rs.1,32,62,985/- on
software. By doing so, the assessee has claimed excess
additional depreciation and excess depreciation ... depreciation were duly disclosed by the assessee at the time
of original assessment proceedings and figures relating to
depreciation on computer software. Regarding
Appendix I, which states that computers including
computer software are entitled to depreciation at
60%. Note 7 of the Appendix defines ... Income Tax Rules, computer including computer software are eligible for
depreciation at the rate of 60% of the written down value
Appendix I, which states that
computers including computer software are entitled to
depreciation at 60%. Note 7 of the Appendix defines ... Appellant Tribunal has decided the issue
relating to depreciation on ‘computer software’ to 25 percent, as against the
rate of 60 percent claimed
depreciation is allowable "on computers including
computer software" @60% in terms of Item 4 under Machinery
and Plant (Item ... Assessing officer restricted the grant of depreciation @60% to
computers and allowed depreciation on software at only 25%
which is the general rate
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
onwards, on "computer including computer
software" depreciation has to be allowed to the tune of 60%. With the inclusion ... treated the
expenditure on acquiring the computer software as expenditure of capital
nature and rightly allowed depreciation as per rules
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
four counts. The first being on account of depreciation
claimed on computer software. In this respect, it is noted that the
returns furnished ... warehouse. The
AO has now alleged that the depreciation on computer software was to
be allowed only to the extent of 25% instead
stock and Rs. 1,79,068 on account of depreciation on computer software which was allowed at 25% instead of 100% as claimed
