Appeal admitted on software depreciation, upheld on Foreign Exchange Gain disallowance.

The appeal was admitted for consideration on the disallowance of depreciation under section 32(1) for software addition. The court focused on whether the Tribunal was correct in deleting the disallowance. However, on the disallowance of Foreign Exchange Fluctuations Gain, the court found no legal issue as the Tribunal's decision aligned with precedent.

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Issues:
1. Disallowance of Depreciation under section 32(1) on addition of software
2. Disallowance of Foreign Exchange Fluctuations Gain

Analysis:
1. The appellant challenged the impugned order passed by the Income Tax Appellate Tribunal on two questions. The first question pertained to the disallowance of depreciation under section 32(1) on the addition of software amounting to Rs. 17,20,361. The court admitted the appeal for consideration, highlighting the substantial question of law: whether the Tribunal was justified in upholding the decision of the Commissioner (Appeals) in deleting the disallowance of depreciation on software under section 32(1) of the Income Tax Act, 1961.

2. Regarding the second question on the disallowance of Foreign Exchange Fluctuations Gain of Rs. 2,32,88,197, the Income Tax Appellate Tribunal applied a previous court decision to the present case. The court noted that the impugned order did not raise any question of law concerning the disallowance of Foreign Exchange Fluctuations Gain. The Tribunal's decision aligned with the precedent set by the court in a prior case, Commissioner of Income Tax v. Priyanka Gems, [2014] 367 ITR 575 (Guj.), leading to the conclusion that no legal issue arose in this context.

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