2023 (4) TMI 368

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....ferred to as the 'CIT(A)'] qua the assessment order for Assessment Years 2016-17 on the ground that:- "NFAC has erred in law and in facts and in circumstances of the case in allowing depreciation @25% on computer software by categorizing it in the block of 'Intangible Asset' as against the depreciation claimed by the Appellant @60% by categorizing it in the block of 'Computer Software'." 2. Briefly stated, facts necessary for consideration and adjudication of the issues at hand are : The assessee company is a non deposit accepting Non Banking Finance Company (NBFC) registered with Reserve Bank of India, earned income under the head "Profits and gains of business or profession" and income from capital gain. Assessing Offi....

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....'ble Madras High Court in the case of Compute Age Management Services (P) Ltd (2019) 109 taxmann.com 134 (Madras) and by the co-ordinate bench of Tribunal in the case of M/s Arkema Chemicals India P Ltd in ITA No.1032/Mum/2021. 7. We have perused the order passed by the co-ordinate bench of Tribunal in case of M/s Arkema Chemicals India P Ltd wherein similar issue has been decided in favour of the assessee by returning the following findings:- "08. We have carefully considered the rival contentions and judicial precedents cited before us. We have also considered the decision of the lower authorities. The issue involved in this appeal is where the assessee has purchased license of ERP SAP, assessee is entitled to the deprecation ....

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....Arkema Chemicals India P. Ltd.; AY 17-18 Management Services (P.) Ltd. [2019] 109 taxmann.com 134 (Madras)/ (2019 (7) TMI 1153 - MADRAS HIGH COURT), wherein depreciation held that software lincense acquired by the assessee was in nature of application software and is eligible for deprecation at the rate of 60%. The honourable court held as Under:- 7. As noticed above, the assessee is in the business of registrar and transfer agent as licensed by the SEBI handling large volume of market sensitive data and information, which is available only through general customized application software. The assessee acquired software licenses capitalized during the relevant years in the books of accounts and claimed depreciation at 60%. In paragr....