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of <h1>Tribunal allows 60% depreciation on multi-functional printer</h1> <h3>Dimple Vishal Agrawal C/o. Mqadhu Printing Hub Versus ITO, Ward-1 (2) (4) Vadodara.</h3> The Tribunal ruled in favor of the assessee, allowing the appeal against the disallowance of depreciation on the xerox machine WV-5745 at a rate of 60%. ... Depreciation on xerox machine - at the rate of 15% OR 60% as claimed by the assessee - HELD THAT:- Assessee is entitled for depreciation at the rate of 60% of this alleged xerox machine WV-5745. The simple reason is that CIT(A) failed to comprehend true nature of this asset. It has been treated as photo-state machine without going through literature of the machine supplied by the manufacturer. According to the manual, it is multi-functional printer. Its feature to make photo-state of a paper is an added activity. It is also pertinent to observe that admissibility of depreciation at the rate of 60% is not disputed by the ld.CIT(A). CIT(A) has granted this rate of depreciation on all other assets, which are treated as peripheral of the computer. To our mind, this asset cannot be excluded for the reasons assigned by ld.CIT(A). It is to be treated as an integral part of the computer system which helps printing from the computer connected with it. Therefore, allow this appeal, and delete disallowance.- Decided in favour of assessee. Issues:- Disallowance of depreciation at the rate of 15% instead of 60% claimed by the assessee on xerox machine WV-5745.Analysis:1. The assessee appealed to the Tribunal against the order of the ld.CIT(A) confirming the allowance of depreciation at 15% instead of the claimed 60% on the xerox machine WV-5745 for the Asstt. Year 2013-14.2. The AO disallowed a sum of Rs. 7,40,297 based on the depreciation claimed by the assessee. The ld.CIT(A) concurred with the AO specifically on the Xerox machine WV-5745, where the assessee claimed depreciation at Rs. 1,89,000. The ld.CIT(A) upheld the disallowance on this item.3. During the appeal hearing, the assessee's counsel argued that the xerox machine was a multi-functional printer capable of photo-state work and printing when connected to a printer. The counsel cited a decision of ITAT, Ahmedabad Bench in a similar case where depreciation at 60% was allowed based on the nature of the asset, not just its nomenclature.4. After considering the arguments and circumstances, the Tribunal found that the ld.CIT(A) failed to understand the true nature of the asset. The machine was not merely a photo-state machine but a multi-functional printer as per the manufacturer's literature. The Tribunal noted that the machine was an integral part of the computer system for printing and should not be excluded from depreciation at 60%.5. Consequently, the Tribunal allowed the appeal, deleting the disallowance of depreciation on the xerox machine WV-5745 at 60% rate. The decision was based on the asset's nature and its role as an integral part of the computer system for printing.6. Therefore, the Tribunal ruled in favor of the assessee, allowing the appeal and pronouncing the judgment on 9th December 2020.
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