without prejudice to the contention that if
the software is treated as capital in nature, depreciation @ 60% should be allowed.
3.3 The Assessing Officer ... expenditure by way of computer
software purchase is not allowable; however, the Assessing Officer allowed
depreciation @ 25%.
4 On appeal, the Commissioner
American Express Services India Ltd., ... vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH
rate of depreciation as computer hardware. Since
no specific rate is prescribed in the rule for computer software they have ... computer system and hence they are eligible for same
rate of depreciation. We accordingly allow depreciation @ 60% on
system software also as claimed
thereafter unabsorbed depreciation treated as current years
depreciation under section 32(2) is to be set off. For computing
deduction under section ... export of computer software. As already observed
unabsorbed business losses of other units cannot be set off and
therefore, unabsorbed depreciation which
facts in law in upholding
the disallowance in respect of software maintenance /
software development expenses amounting to `
12,60,475/- holding the same ... existing
computer software which were already loaded on the computers and
for purchasing certain other application software required for
facilitation
separate
manufacturing unit. The other units located elsewhere were producing
softwares or trading in goods. The assessee decided to close down the
Dharuhera unit, with ... block leading to nil value
at the end of the year. No depreciation has been charged in the books.
Further the assessee had building
depreciation on
computer peripherals/ accessories ignoring that as per the IT
Rules 60% depreciation is allowable only on computer and
computer software and not on computer peripherals and
accessories.
2. In the facts and circumstances of the case, The learned
Rules specifically allow hire rate of
depreciation at 60% only on computer and computer software
and not on computer ... though the IT Rules allows 60%
depreciation only on computer and computer software.
5. The appellant craves leave for reserving
item (5) of the depreciation
schedule in the I.T. Rules, 1962 "Computer
including computer software" under the
major ... also mentioned that 'computer software'
means any computer program recorded on
any disk, tape, perforated media or other
information
engaged in the export of articles or things or computer software. Before the
word 'undertaking' it is qualified by the word ... thereafter
the unabsorbed depreciation treated as current years depreciation u/s 32(2) is to
be set off. For computing deduction
