Robotix Kits Ineligible for 60% Depreciation, Remittance for Re-Examination, Appeal Partly Allowed. The Tribunal held that robotix kits were not eligible for depreciation at 60%. The issue of the addition of Rs. 14,48,466 was remitted back to the ...
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Robotix Kits Ineligible for 60% Depreciation, Remittance for Re-Examination, Appeal Partly Allowed.
The Tribunal held that robotix kits were not eligible for depreciation at 60%. The issue of the addition of Rs. 14,48,466 was remitted back to the Assessing Officer for re-examination based on the availability of bills and vouchers provided by the assessee. The appeal was partly allowed for statistical purposes.
Issues: 1. Depreciation claimed on robotix kits 2. Addition of Rs. 14,48,466
Depreciation claimed on robotix kits: The appeal was against the order of the Commissioner of Income Tax (Appeals) regarding the assessment year 2014-15. The main issue was the depreciation claimed by the assessee on robotix kits. The assessee argued that since the robotix kits can only be operated with a computer, they should be considered under the head "computer" and be eligible for depreciation at 60%. However, the Tribunal noted that just because the kits are operated through a computer does not make them computers themselves. The Tribunal distinguished between computers, which process data, and machinery like robotix kits, which perform tasks based on computer instructions. Therefore, the Tribunal held that the assessee was not eligible for depreciation at 60% as claimed.
Addition of Rs. 14,48,466: The second issue was the addition of Rs. 14,48,466. The assessee claimed depreciation for three blocks of assets at different rates. The Assessing Officer disallowed Rs. 14,48,466 for the third block as proper bills were not submitted. The assessee argued that bills were available and requested a reconsideration. The Departmental Representative contended that since the addition was not challenged before the CIT(Appeals), the matter should not be raised before the Tribunal. The Tribunal decided to give the assessee another opportunity to produce bills, stating that settling facts at the Tribunal level was essential. The issue was remitted back to the Assessing Officer for re-examination based on the bills and vouchers that may be provided by the assessee. The appeal was partly allowed for statistical purposes.
In conclusion, the Tribunal upheld that robotix kits were not eligible for depreciation at 60% and remitted the issue of the addition of Rs. 14,48,466 back to the Assessing Officer for further examination based on the availability of bills and vouchers.
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