Revenue's Appeal Dismissed on Depreciation Rate & Lease Charges; Tribunal Upholds CIT(A) Orders

The Revenue's appeal was dismissed, upholding the CIT(Appeals) orders on the depreciation rate for software and the disallowance of lease equalization charges under Section 115JB. The Tribunal found that software qualified for 60% depreciation as per Income-tax Rules, rejecting the Revenue's argument based on the previous year's decision. Additionally, the Tribunal upheld the CIT(Appeals) decision regarding the lease equalization charges, in line with a High Court ruling that such charges should not be added back to profits.

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Issues involved: Appeal by Revenue against CIT(Appeals) order, depreciation rate on software, disallowance of lease equalization charges under Section 115JB.

Depreciation on software: Revenue appealed CIT(Appeals) order directing 60% depreciation on software, citing previous year's 25% allowance. AR argued for 60% depreciation as per rules and Income-tax Act. Tribunal found software fell under 60% depreciation in Income-tax Rules, rejecting Revenue's argument based on previous year's decision. Ground No.2 dismissed.

Disallowance of lease equalization charges: Revenue challenged deletion of disallowance of lease equalization charges under Section 115JB. AR cited High Court decision that such charges were not a reserve and should not be added back to profits. DR admitted issue favored assessee based on High Court decision. Tribunal upheld CIT(Appeals) decision, finding no error. Ground No.3 dismissed.

Conclusion: Revenue's appeal dismissed, upholding CIT(Appeals) orders on depreciation rate for software and lease equalization charges under Section 115JB.

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