TaxTMI 
TaxTMI 
TaxTMI 
2016 (2) TMI 1364
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....r assessment year 2009-10. As per the learned AR similar disallowance was made for assessment year 2008-09 and 2009-10 also. The Tribunal had set aside this issue to the file of the AO for considering whether the net working equipment could function independently or only in conjunction with a computer. This Tribunal held that in the former case, it should be considered as a computer eligible for depreciation at the rate of 60%, whereas in the latter case it would be eligible for only 15%. 3. Per contra, learned DR fairly admitted that the issue requires a fresh look by the AO. 4. We have perused the orders and heard the rival contention. Claim of the assessee before the AO, was that the audio/video conference equipment and video streaming equipment were also net working equipment eligible for depreciation at 60%. The AO had held the claim of the assessee to be farfetched. According to him, the devices had long period of effective use and were not amenable to virus attacks or redundancy. Learned CIT(A) also approved such view, taken by the AO and held that such equipment would be eligible for only 15% depreciation as available for general plant & machinery. In this regard, we find....
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....eo conferencing system comprise of audio-video devices/equipments which facilitate in bringing people at different sites together for a meeting. Besides the audio and visual and meeting activities, these systems can also be used to share document, computer information and boards, Conferencing works across IT network, ISD through computers/computer network etc., and audio/video facility consist of many elements including the use of CODEC which stands for coder-decoder. Codec is a device, which converts and compresses an analog audio-video signal into digital data and then sends it over a digital line. The decoder reverses the processes at the receiving end and this compression and decompression allows large amount of data to be transferred across a network at close to real time. Conferencing systems make use of various end points in a system such as video input consisting of camera, video output in the form of microphones and speakers etc. The data transmission happens in a number of ways depending on the technology being used including digital technologies as well as analog technologies, broadband internet connection and radio frequencies which can include satellite transmission an....
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....he Tribunal considered the decision of the ITAT, Calcutta Bench in the case of ITO vs. Simran Majumdar (98 ITD 119) wherein the Tribunal had considered the similar issue wherein depreciation at the rate of 60% was claimed on printers and scanners and it was held that they were eligible for depreciation at the rate of 60%. The Tribunal, however, held that the contentions of the assessee therein were not before the AO and therefore the issue was set aside to the file of the AO to consider each of the items in detail and find out which can be equated and construed as computer for the purpose of granting depreciation at the rate of 60% after providing the assessee due opportunity of hearing. 8.3 In the case before us also, all the components of the equipment are necessary for fulfillment of the objective of the audio-visual conferencing and video streaming. Some of the components may exist independently and may also be functioning independently but in the assessee's business they are only performing the functions as input and output devices. The assessee can also use this equipment independent of the computer system used in the audio visual conferencing and video streaming activity. ....
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....ion at the rate of 60% is to be allowed. With regard to audio/video streaming equipments the Hon'ble Tribunal has remanded the issue to the AO for classification of the equipments as Computers or Plant & Machinery. Any exercise carried to rework the written down value in view of the aforesaid decisions would be infructuous and pre-mature. However, once the audio/video streaming equipments are classified the WDV value will be re-worked and the depreciation allowed accordingly. With regard to the disallowance of brought forward losses, the benefits will be passed on to the assessee on giving effect to the orders of the ITAT received". Thus, we find that the claim of brought forward loss was not considered by the AO. The AO is directed to verify such claim and to give a set off of brought forward loss as allowed under law. Ground no.3 is allowed for statistical purposes. 8. In its ground nos.4 to 8 assessee assails the treatment given by the lower authorities to the international transactions pertaining to payments made by it for administrative support services received by it from its associated enterprises namely M/s Cisco Systems Capital Asia Pte Ltd. Singapore and M/s Cisco Sys....
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....ive support services, we find that this issue had also arisen in the assessee's own case for assessment year 2008-09 and this Tribunal, at paragraph 13.2 of its order dated 19-9-2014 (supra) has discussed the issue at length and has remanded the issue with certain directions to the TPO. The relevant portion of the order is reproduced hereunder for ready reference: "13.2 Having heard both the parties and having considered the rival contentions and also material on record, we find that the AO has given a finding that the tax payer did not produce any supporting evidence to establish that the services were actually received by it. Similarly, before us also, except for stating that the assessee has received administrative management services, no evidence is produced before us to substantiate the claim. The assessee has filed copies of agreement with the associated enterprises in support of its contentions that services were rendered pursuant to the said agreement and the payment for such services is allowable. The assessee has further submitted that the assessee has paid the administrative services fee at 5% of cost which was less than the average margin of 13 comparables companies. ....