Depreciation on computer can be claimed at 60%

IN THE INCOME TAX APPELLATE TRIBUNAL

DELHI BENCH: B: NEW DELHI

BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT

AND

SHRI I.P. BANSAL, JUDICIAL MEMBER

ITA No.686/Del/2012

Assessment Year: 2008-09

DCIT,

Circle 11 (1),

Room No.312,

CR Building,

New Delhi.

(Appellant)

Vs.

 Easy Bills Ltd.,

51, Okhla Industrial Area,

Phase III,

New Delhi.

PAN: AABCE0570H

 (Respondent)

Assessee by: Shri Alok Gupta, AR

Revenue by: Shri Surender Pal, Sr. DR

ORDER

PER I.P. BANSAL, JUDICIAL MEMBER

This is an appeal filed by the revenue. It is directed against the order passed by the CIT (A) dated 28th November, 2011 for Assessment Year 2008-09. The grounds of appeal read as under:-

“1. On the facts and circumstances of the case and in law, the CIT (A) has erred in deleting the addition of Rs.66,15,933/- on account of disallowance of higher rate of depreciation @ 60% on computer peripherals.

2. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing.”

2. The return of income in the present case was filed at a loss of Rs.19,03,733/-. The only addition made to that loss is regarding depreciation claimed on computers which is granted by the Assessing Officer @15% as against the claim of the assessee of 60% and excess depreciation claimed by the assessee has been computed at Rs.66,15,933/-. Learned CIT (A) has granted relief to the assessee by way of an ex parte order on the basis of decision of Hon’ble Delhi High Court in the case of CIT vs. BSES Rajdhani Power Ltd. vide order dated 31st August, 2010 in ITA No.1266/2010.

3. The learned DR relying upon the order of the Assessing Officer, pleaded that depreciation @ 15% was rightly allowed by the Assessing Officer and learned CIT (A) is wrong in accepting the claim of the assessee.

4. On the other hand, the learned AR of the assessee besides relying upon the aforementioned decision of Hon’ble Delhi High Court in the case of CIT vs. BSES Rajdhani Power Ltd also relied upon the decision of Hon’ble Delhi High Court in the case of CIT vs. Bonanza Portfolio Ltd. 2011-TIOL-555-DEL-IT in which it was held by the Hon’ble High Court that the assessee is entitled to depreciation @ 60% on the computer and computer peripherals.

5. In this view of the situation, after hearing both the parties, we are of the opinion that learned CIT (A) has rightly accepted the claim of the assessee and his order is in accordance with the aforementioned two decisions of Honb’le Delhi High Court. We have no reason to interfere in the relief given by learned CIT (A). Finding no merit in the departmental appeal, the same is dismissed.

6. In the result, the appeal is dismissed.

Order Pronounced in the open court on 13.4.2012.

                                                 Sd/-                                  Sd/-

                                     [G.D. AGRAWAL]           [I.P. BANSAL]

                                     VICE PRESIDENT       JUDICIAL MEMBER

Dated, 13.04.2012.

dk

Copy forwarded to: -

1. Appellant

2. Respondent

3. CIT

4. CIT (A)

5. DR, ITAT

Deputy Registrar,

ITAT, Delhi Benches