TaxTMI 
TaxTMI 
2014 (9) TMI 1105
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....ms are computers and allowing depreciation @ 60% thereon ignoring the fact that every electronic item having memory and storage cannot be covered under the definition of computers eligible for deduction of depreciation @60%. 2. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 3. At the time of hearing, Ld. Counsel of the assessee stated that the issue in dispute has already been decided by the Hon'ble Jurisdictional High Court vide order dated 31.8.2010 in ITA No. 1266/2010 in the case of Commissioner of Income Tax vs. BSES Rajdhani Powers Ltd. He has also filed a copy of the aforesaid Order dated 31.8.2010 passed by....
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....re will be entitled for depreciation @ 60%. Since as per the I.T. Rules, only the computers and computer software are eligible for depreciation @ 60%, the same cannot be extended to computer accessories and peripherals. In this regard, specific query made in this regard to explain as to why the depreciation claimed on computer accessories @60% should not be disallowed. The counsel for the assessee vide letters dated 30-12-2005 Stated as under:- "The features and specifications of the POS machines, ore similar to the computers. The POS machines are capable of performing the basic functions performed by a computer such as data processing, storage etc. In this regard your honour's kind attention is invited to the definition of 'computer&....
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....Authority, who vide impugned order dated 25.7.2013 had decided the issue in dispute in favor of the assessee by respectfully following the Order dated 31.8.2010 of the Hon'ble Jurisdictional High Court passed in ITA No. 1266/2010 in the case of Commissioner of Income Tax vs. Rajdhani Powers Ltd. The finding of the Ld. First Appellate Authority vide Para no. 6 at Pages 10 & 11 are reproduced below:- "6. In Grounds of appeal no. 4 to 4.1 the appellant has contested the finding of the assessing officer in allowing depreciation on Point of Sale (POS) systems @ 25% only as against 60% claimed by the appellant. The brief facts giving rise to the present grounds are that the appellant installed POS machines at each of its fast food restaurant f....
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....hines support data sharing through LAN (Ethernet) and also have two USB ports. That being so, I am of the opinion, that the POS terminal is akin to the computer in terms of basic features and can very well be categorized as 'Computers'. I further find support from the decision of the Delhi High Court in the case of BSES Rajdhani Powers Ltd (supra), wherein the Court considered computer accessories and peripherals such as printers, scanners and server, etc., forming an integral part of the computer system and has allowed depreciation @ 60% on the same. The present case, in my view, stands on much better footing inasmuch as the POS in itself functions like a computer as against any peripheral devices. This ground of appeal is accordin....