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| The Tax Publishers2020 TaxPub(DT) 2083 (Chen-Trib) : (2020) 185 ITD 0045 : (2020) 205 TTJ 0892 : (2020) 080 ITR (Trib) 0555 INCOME TAX ACT, 1961
Section 32(1)
Though digital content was manipulated by assessee to be used in different films but still it could not be categorized to a higher pedestal of being termed as 'computer program' rather it still retained the character of copyrighted material being intangible asset and thus assessee was eligible for depreciation @ 25% as against 60%.
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Depreciation - Rate of depreciation - 'Digital Content' developed by assessee -
Assessee being 100% EOU status under EHTP Scheme and engaged in development of 'Digital Content'/Animation Software' for utilization in production of films claimed depreciation @ 60% on 'Digital Content' developed by it. As per assessee these were customized software. AO held that 'Digital Content' being an 'intangible asset' was eligible for 25% depreciation. Held: To say that digital content developed by assessee could be equated with computer program was far fetched but rather it was a copyrighted material developed by assessee which was stored in computer. This digital content was manipulated by assessee to be used in different films but still it could not be categorized to a higher pedestal of being termed as 'computer program' rather it still retained the character of copyrighted material being intangible asset and thus assessee was eligible for depreciation @ 25% as against 60%.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2007-08
INCOME TAX ACT, 1961
Section 14A
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