Tribunal allows extra depreciation on computer peripherals, overturns TDS disallowance, remits rebate restriction.

The Tribunal upheld the appellant's claim for extra depreciation on computer peripherals, allowing depreciation at 60% by considering them integral to the computer system. The disallowance of TDS on payments made to NSE was overturned as the payments were not subject to TDS provisions. The Tribunal remitted the restriction of rebate under Section 88E back to the Assessing Officer for proper reconsideration, emphasizing the requirement for adequate evidence and giving the assessee a fair opportunity to be heard. The appeal by the Revenue was dismissed, and the cross objection by the assessee was allowed for statistical purposes.

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Issues involved:
1. Disallowance of extra depreciation claimed on computer peripherals.
2. Disallowance of TDS on payments made to NSE.
3. Restriction of rebate under Section 88E of the Income Tax Act.

Disallowance of extra depreciation claimed on computer peripherals:
The appellant claimed extra depreciation on computer peripherals, but the Assessing Officer disagreed, stating that only 15% depreciation was allowable. The Commissioner of Income Tax (A) ruled in favor of the appellant, considering computer peripherals as part of the computer system and allowing depreciation at 60%. The Tribunal upheld this decision, citing a precedent where computer accessories were deemed integral to the computer system and eligible for higher depreciation.

Disallowance of TDS on payments made to NSE:
The Assessing Officer disallowed a sum of &8377; 26,58,762 for non-deduction of TDS on payments to NSE. The Commissioner of Income Tax (A) overturned this decision, stating that the payments were not covered under TDS provisions and were made in the normal course of business. The Tribunal upheld this, emphasizing that the payments did not fall under the relevant statutory provisions and were not subject to TDS requirements.

Restriction of rebate under Section 88E of the Income Tax Act:
The Assessing Officer restricted the rebate under Section 88E claimed by the assessee, citing discrepancies in the computation and failure to provide proper evidence. The Commissioner of Income Tax (A) affirmed this decision. However, the Tribunal remitted the issue back to the Assessing Officer for reconsideration, emphasizing the need for proper evidence and giving the assessee a fair opportunity to be heard. As a result, the appeal filed by the Revenue was dismissed, and the cross objection by the assessee was allowed for statistical purposes.

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