following the erroneous direction of the DRP in recalculating depreciation
on computer software @ 25% instead of @ 60% as claimed by the
Appellant ... software expenses on up gradation of its existing software
namely MFGPRO, MS-office, etc and claimed depreciation @ 60%
as applicable to computer software
following the judicial precedents.
9. Restriction of depreciation on computer software from 60 per cent to
25 per cent
9.1. The learned ACIT ... restricting depreciation claim to a lower rate of 25% as against the Appellant's
claim for depreciation on computer software
Income Tax Rules where under
computers, including computer software are entitled to depreciation at the rate of
60%. 'Computer ... table (III. Machinery and Plant (5)) prescribes depreciation @
60% for computers including computer software. Computer software has not been
Dy.Commissioner Of Income Tax, ... vs M/S. Acalmar Oils & Fats Ltd.,, ... on 21
computer software. When the statute specifically provides for
treating the computer software as a capital asset and
allowing depreciation thereon ... computer software. When the statute specifically provides for
treating the computer software as a capital asset and allowing
depreciation thereon
considering the license fees paid towards purchase of
computer software (to facilitate inventory, sales order and
sub-contract management etc.) as an intangible ... acquisition of "right to use" the application, thereby
allowing depreciation at the rate of 25% as against the
Appellant's claim
raised the
following grounds :
"1. Disallowance of depreciation on computer software.
1.1. The Learned AO has erred in disallowing the depreciation ... grounds are with respect to
disallowance of depreciation on computer software.
3.1. AO noticed that assessee had purchased software aggregating
treated the expenditure on acquiring the
computer software as expenditure of capital nature and
rightly allowed depreciation as per rules."
5.5 Reliance ... ITAT held that computer
software was tangible asset eligible for depreciation @ 60%.
In the result, the Automation software expenses
computers including
computer software. "Computer software" is defined in the ''Rule as "any
computer ... computers including
computer software. "Computer software" is defined in the ''Rule as "any
computer
case by disallowing differential
depreciation of Rs. 1,15,860 on Voice Recording Software License
stating that depreciation on such software license ... difference between the
computer software and the software on which the assessee is claiming
depreciation at the rate of 60%, which is merely
