The Ahmedabad bench of Income Tax Appellate Tribunal (ITAT) has recently held that Assesee is entitled to 60% Depreciation Claim on Licenses to use Software.
Bhavin Marfatia, appeared for the assessee and Sudhendu Das, appeared for the revenue.
Assessing officer had restricted depreciation claimed by the assessee Gujarat Green Revolution Co. on Licenses to use software at 25% as opposed to rate of depreciation of 60% claimed by the assessee resulting in disallowance of depreciation of Rs.2,25,170/-.
When the matter came before CIT(A), it was held that the assessee is entitled to depreciation on softwares at 60%. Against the decision revenue filed the above appeal before the tribunal.
Counsel for the assese submitted that Identical issue was already decided in favour of assesee and the Department was in appeal on the same issue, which was dismissed by the ITAT.
Counsel for the revenue supported the contentions of the assessing officer and contented that assesee entitle only 25% depreciation on licenses to use software.
Accordingly,Annapurna Gupta, (Accountant Member) and T.R.Senthil Kumar, (Judicial Member) held that the assessee was entitled to depreciation at the rate of 60% on computer software.
Therefore, the bench dismissed the appeal of the revenue.
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