ITAT Upholds 60% Depreciation on Computer Peripherals

The ITAT dismissed the Revenue's appeal and upheld the allowance of depreciation at 60% on computer peripherals and accessories, in line with the decision of the Delhi HC. The ITAT emphasized the integral nature of these items to computer systems, supported by various precedents, and found no contrary evidence from the Revenue to warrant a different view. Consequently, the appeal was dismissed, affirming the decision of the ld. CIT(A) to allow depreciation at the rate of 60% on computer peripherals and accessories.

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Issues: Disallowance of depreciation claimed under section 32 of the Income-tax Act.

Analysis:
1. The appeal was filed by the Revenue against the order of the ld. CIT(A) deleting the disallowance of depreciation of Rs. 83,49,188 claimed under section 32 of the Act. The Assessing Officer restricted the claim for depreciation on certain equipment to 15% instead of 60% claimed by the assessee, resulting in the disallowance.
2. The ld. CIT(A) allowed the claim of the assessee by considering various precedents and rulings. It was held that computer accessories and peripherals like printers, scanners, routers, switches, pen drives, and networking equipment are part and parcel of the computer systems and are entitled to depreciation at the rate of 60%.
3. The Revenue challenged the findings of the ld. CIT(A) before the ITAT. Both parties agreed that the issue was covered by the decision of the Delhi High Court in a similar case. The ITAT considered various decisions and upheld the findings of the ld. CIT(A) based on the precedent that computer accessories and peripherals are integral parts of the computer system and qualify for depreciation at 60%.
4. The ITAT referred to multiple judgments and rulings supporting the allowance of depreciation at 60% on computer peripherals and accessories. The ITAT emphasized that the Revenue did not provide any contrary decision or material to warrant a different view. Therefore, the ITAT dismissed the appeal and upheld the depreciation allowance at 60% on computer peripherals and accessories.
5. No additional grounds were raised in the appeal, and no new arguments were presented. Consequently, the ITAT dismissed the appeal, affirming the decision of the ld. CIT(A) to allow depreciation at the rate of 60% on computer peripherals and accessories.

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