https://www.taxtmi.com/caselaws?id=327884 The Tribunal remanded the case back to the Assessing Officer for a fresh assessment regarding the restriction of depreciation on license fees paid for computer software. The Tribunal emphasized the need for a detailed examination based on the Special Bench decision, which clarified that computer software qualifies for 60% depreciation. The Tribunal highlighted the importance of applying a functional test to determine the nature of the expenditure and directed the AO to evaluate each software independently to ascertain the appropriate rate of depreciation. The appeal was allowed for statistical purposes, stressing the necessity of adhering to established principles in such cases. en-us Thu, 19 May 2016 00:00:00 +0530 Fri, 12 Aug 2016 12:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=327884 The Tribunal remanded the case back to the Assessing Officer for a fresh assessment regarding the restriction of depreciation on license fees paid for computer software. The Tribunal emphasized the need for a detailed examination based on the Special Bench decision, which clarified that computer software qualifies for 60% depreciation. The Tribunal highlighted the importance of applying a functional test to determine the nature of the expenditure and directed the AO to evaluate each software independently to ascertain the appropriate rate of depreciation. The appeal was allowed for statistical purposes, stressing the necessity of adhering to established principles in such cases. Case-Laws Income Tax Thu, 19 May 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=327884