TaxTMI 
TaxTMI 
2021 (11) TMI 680
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....ration Software (PAS) against the rate of 25% applicable to intangible assets. a). Whether the Ld. CIT(A) has erred in holding that the software in question is covered in Item No. 5 in Part A "Tangible Assets" under the head "Machinery and Plant" in the Appendix under Rule 5, failing to appreciate that expression "computer including computer software" in the said Item implicitly refers to the systems software which runs the computer and is an integral part of computer itself as a "Tangible Asset" and that the payments for right to use specialized software applications constitute an "Intangible Assets" in Part B, being in the nature of license on which depreciation @ 25% only is admissible. b) Whether the Ld. CIT(A) has fai....
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....ee. 5. Aggrieved against this, the Revenue is in appeal before this Tribunal. 6. Ld. Sr. DR vehemently argued that Ld. CIT(A) was not justified in allowing the claim of depreciation @ 60% as the software was customized and could be used without the operation of computer. He contended that such software would fall within the category of intangible assets. Therefore, the depreciation of such assets is allowable @ 25% only. 7. On the contrary, Ld. Counsel for the assessee opposed these submissions and supported the order of Ld. CIT(A). He submitted that the issue is no more res integra. The issue has already been decided in catena of judgments in favour of the assessee by allowing the depreciation @ 60%. He submitted that under the id....
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....No. 617, 697, 698/Mds/2011), Chennai ITAT. IV. ACIT vs. Voltamp Transformers Ltd. (ITA No. 1676/Ahd/2012), Ahmadabad, ITAT V. TNS India Pvt. Ltd. v. ITO (2015)(69 SOT 22), Hyderabad ITAT VI. Amway India Enterprises Vs. DCIT, 111 ITD 112, Delhi ITAT. VII. Deepak Fertilizers & Petrochemicals Corpn. Ltd. vs. DCIT (ITA Nos. 4904 & 5027/Mum/2009) 6.1. I have carefully gone through the finding of the AO, submission of the appellant and the case laws. Ld. AR has relied upon decision of IT AT Delhi in the case of M/s. Amway India Enterprises (supra) in which ITAT has allowed depreciation on software @ 60%. Respectfully following the decision of ITAT Delhi. it is held that depreciation @ 60% is allowable ....
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....e to the exposition it has received from contemporary authority, though it must give way where the language of the statute is plain and unambiguous. 11. By applying the rule of interpretation, we find that the relevant entry under old appendix I Clause III (5) states computers including computer software and the Notes under the Appendix defines 'computer software' in Clause 7 to mean any computer program recorded on disc, tape, perforated media or other information storage http://www.judis.nic.in device. Noteworthy to mention that the notes contained in the appendix, the term 'computer' has not been defined. Therefore, as pointed out by the Division Bench in Bimetal Bearings Ltd. (supra), if a particular article wou....