Depreciation at 60% Allowable on Computer Softwares: ITAT [Read Order]

Depreciation - Computer - Softwares - ITAT - TAXSCAN

The Mumbai bench of Income Tax Appellate Tribunal (ITAT) held to direct the Assessing Officer to restrict the depreciation on software expenses @60%.

The assessee, Peninsula Land Ltd filed an appeal before ITAT   upon the order made by the CIT (A) in upholding the action of the AO of restricting depreciation on software expenses at 25% instead of 60%.

The AR Shri Vijay Mehta observed that software expenses has been considered by the special bench of the Tribunal in the case of Amway India Enterprises v. DCIT and restricted the depreciation on software expenses at 60%.

The DR Shri Achal Sharma relied on the order of the CIT(A).

After considering the contetion  of the both side the division bench of   ITAT compraising Sri.  Shri Vikas Awasthy (Judicial Member) and  Shri S. Rifaur Rahman, (Accountant Member)  allow the appeal filed by the assessee and  direct the Assessing Officer to restrict the depreciation on software expenses @60%.

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M/s. Peninsula Land Ltd vs Addl. CIT - 7(1)

Counsel for Appellant:   Vijay Mehta

Counsel for Respondent:   Achal Sharma

CITATION:   2022 TAXSCAN (ITAT) 1739

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