Tribunal ruling: Assessee's appeal partially allowed, employees' contribution disallowance dismissed. CIT(A)'s decisions upheld.

The Tribunal partially allowed the assessee's appeal on the provision for maintenance, dismissed the appeal on employees' contribution disallowance, and upheld the CIT(A)'s decisions on the depreciation of a trademark and the depreciation rate on software.

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Issues:
1. Disallowance of employees' contribution of PF and ESI
2. Disallowance of provision for maintenance and free service/warranty
3. Disallowance of depreciation claimed on trademark
4. Depreciation rate on software being customized license product

Analysis:

1. Employees' Contribution Disallowance:
- The assessee appealed against the disallowance of employees' contribution of PF and ESI. The Tribunal dismissed this appeal citing a previous decision by the Gujarat High Court.

2. Provision for Maintenance Disallowance:
- The assessee contested the disallowance of provision for maintenance and free services/warranty while determining book profit under section 115JB. The Tribunal agreed with the assessee that such provisions are not contingent liabilities and allowed the appeal based on previous court decisions.

3. Depreciation on Trademark:
- The Revenue appealed against the disallowance of depreciation claimed on a trademark. The Tribunal upheld the CIT(A)'s decision in favor of the assessee, citing relevant court decisions supporting the claim for depreciation on goodwill acquired through a slump sale.

4. Depreciation Rate on Software:
- The Revenue challenged the depreciation rate on software being a customized license product. The CIT(A) allowed depreciation at a rate of 60% instead of 25%, based on interpretations of the Income Tax Act and previous rulings. The Tribunal upheld the CIT(A)'s decision, emphasizing that the Act does not differentiate between computer software and licenses in the depreciation table.

In conclusion, the Tribunal partially allowed the assessee's appeal regarding the provision for maintenance and dismissed the appeal on employees' contribution disallowance. Additionally, the Tribunal dismissed the Revenue's appeal on the depreciation of a trademark and the depreciation rate on software, upholding the CIT(A)'s decisions in both instances.

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