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The Tax Publishers2020 TaxPub(DT) 2712 (Del-Trib) INCOME TAX ACT, 1961
Section 32
CIT(A) had in principle held that assessee was eligible for deduction of deprecation @60% on software and no infirmity in the order of CIT(A) in upholding that depreciation on software was allowable @60%, however, for working out actual block of asset on which depreciation was to be allowed, he directed AO to verify the same. Accordingly, appeal of Revenue was dismissed
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Depreciation - Disallowance of excess depreciation - Depreciation on software @60% -
Assessee was engaged in business of stock and shares broker. Assessment under section 143(3) was passed wherein, AO disallowed the excess depreciation claim on software. CIT(A) held that assessee had purchased software on which the depreciation was allowable @60% and not @25% had allowed by AO. Therefore, referring to the sub-clause 5 of clause III of part A appendix 1 to rule 5(1) he held that on computers and computer software assessee was eligible for deduction @60%. Held: Assessee submitted that CIT(A) had in principle held that assessee was eligible for deduction of deprecation @60% on software. However, for the purpose of computation of actual cost he directed AO to verify the same. No infirmity in the order of CIT(A) in upholding that depreciation on software was allowable @60%. However, for working out actual block of asset on which depreciation was to be allowed, he directed AO to verify the same. Therefore, appeal of Revenue was dismissed.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 37(1)
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