TaxTMI 
TaxTMI 
2026 (1) TMI 596
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....d of appeal pertains to a claim of depreciation @60% on software obtained by the assessee. This claim was restricted to 25% by the Ld. AO and this action was confirmed by the Ld. CIT(A) on the basis a finding that the software in question was developed in-house and was developed to suit the peculiar requirements of the assessee. The Ld. CIT(A) has given a finding that such a software was covered under the definition of "intangible assets" and would be subjected to a depreciation of 25% only. 1.1 Aggrieved with this action the assessee has approached the ITAT with several grounds, four of which challenge the assumption of jurisdiction. However, the Ld. AR mentioned at the Bar that he would not be pressing ground nos. 1,2,3 & 4. It was men....
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....been recorded: - "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 judgements in favour of the assessee by allowing the depreciation @ 60%. He submitted that under the identical facts, the Hon'ble Madras High Court in the case of CIT vs Computer Age Management Services (P.) Ltd.[2019] 109 taxmann.com 134 (Madras) decided the issue in favour of the assessee by allowing depreciation @ 60%. 8. We have heard the rival contentions and perused the material available on record and gone through the orders of the authorities below. Ld.CIT(A has decided the issue by obser....
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.... through the finding of the AO, submission of the appellant and the case laws. Ld. AR has relied upon decision of ITAT 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 in the case of software. In view of this the appeal of the appellant is allowed." 9. Further, Ld. Counsel for the assessee has placed reliance on the decision of Hon'ble Madras High Court in the case of CIT vs Computer Age Management Services (P.) Ltd (supra). The Hon'ble High Court has held as under:- 11. "In the decision rendered by a Division Bench of this Court in the case of CIT Vs. M/s Cactus....
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.... perforated media or other information storage 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 would fall within the description by the force of words used, it is impermissible to ignore the word description. Thus, going by the usage of the equipment purchased by the petitioner, we have to take a decision." 12. As held in the above decision, if a particular article would fall within the description by the force of the words used, it is impermissible to ignore the word 'description' and going by the usage of the equipment purchased by the assessee,....