TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 2112
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....in directing the AO to allow deprecation @ 60% instead of @25% made by the AO. 2). Whether the Ld. CIT(A) has erred in law on the facts in deleting the disallowance u/s. 14A of the IT Act of Rs. 78,84,222/-." 3. In this case, return of income declaring loss of Rs. -55,62,77,310/- was filed on 29th Sep, 2011. Subsequently, the case was selected under scrutiny by issuing of notice u/s. 143(2) of the act on 3rd August, 2012. Further facts of the case are discussed under respective ground of appeal as under Disallowance of Rs. 78,84,214/- u/s 14A of the act 4. During the course of scrutiny assessment, the assessing officer noticed that assesse has earned exempt income in the form of dividend of Rs. 93,48,642/- and assessee has itself di....
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....sentative has supported the order of ld. CIT(A) and also submitted that the Co-ordinate Bench of the ITAT in the case of the assessee itself for assessment year 2010-11 vide ITA no. 2021/Ahd/2013 has decided the identical issue in favour of the assessee. 7. We have heard both the sides and perused the material on record carefully. It is noticed that as on 31st March, 2011, the assessee was having its own fund of Rs. 158.57 crores (share capital of Rs. 69.44 crores + reserves of Rs. 89.14 crores). It is explained that borrowed funds were utilized for construction of hospital building and the interest amount was capitalized as evident from rule 19 of annual accounts. We have also noticed that identical issue on similar facts in the case of t....
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....eciation 9. This ground of appeal of the revenue is against the decision of ld. CIT(A) of allowing depreciation @ 60% instead of depreciation @ 25% allowed by the assessing officer on system software of the computer. The assessing officer observed that application software are not integral part of the computer and held that the application software is intangible assets and they are eligible for depreciation u/s. 32 of the act @ 25%. 10. Aggrieved assessee has filed appeal before the ld. CIT (A). The ld. CIT (A) has allowed the appeal of the assessee after placing reliance on the decision of the Co-ordinate Bench of the ITAT in the case of Voltamp Transformers Ltd. ITA No. 1676/Ahd/2012. The relevant part of the decision of the ld. CI T(A....
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....n'ble Mumbai special bench in its order of Data Craft India Ltd. (supra) highlighted the fact that term 'computer' has not been defined under the IT Act nor in the general clauses Act, 1987, the meaning of the term computer has to be understood by applying the principles of statutory interpretation i.e., one has to give the meaning to the expression 'computer' not merely by going to the dictionary meaning but by applying common parlance or commercial parlance tests as well as by analysing the intendment of legislature in providing higher rate of depreciation..... The Hon'ble special bench further went on to hold that 'though functions of the computer as one composite unit is for performing logical, arithmetica....
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.... at serial no.5 name of the asset is 'computers including computer software'. The meaning of computer software is also given in note no.7 given below the table of rate of depreciation. According to this note the 'computer software' means any computer programme recorded on any disk, tap, perforated media or other information storage device. Hence, by any interpretation the computer software cannot be treated outside the purview of the asset eligible for depreciation the rate of 60%. Accordingly, the AO is directed to allow the depreciation @ 60% as prescribed in the Income Tax Act. The appeal on this ground is allowed." 11. We have heard the rival contentions and perused the material on record carefully. It is noticed that ....