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Wednesday, August 5, 2020

UPS an essential part of computer system & is eligible for depreciation @ 60%

UPS an essential part of computer system & is eligible for depreciation @ 60%

IN THE INCOME TAX APPELLATE TRIBUNAL

The Relevant Text of the Order as follow :

25. After hearing both the sides, we find the assessee claimed depreciation on UPS @ 60% treating the same to be part of computer and peripherals. We find, the AO held that UPS is not a part of computer and peripherals and it is eligible for depreciation @ 15% being plant & machinery. We find, the ld. CIT(A) allowed depreciation @ 60%. We do not find any infirmity in the order of the CIT(A) on this issue.

The Hon’ble Delhi High Court in the case of CIT vs. BSES Yamuna Powers Ltd. vide ITA No.1267/2010 and in the case of BSES Rajdhani Powers Ltd. vide ITA No.1266/2010 has held that UPS is an essential part of computer system and is eligible for depreciation @ 60%. The various other decisions relied on by the ld. Counsel in the paper book also supports its case that UPS is eligible for higher rate of depreciation. In view of the above, we do not find any infirmity in the order of the CIT(A) in directing the AO to allow depreciation @ 60% on UPS. Accordingly, the order of the CIT(A) is upheld and the ground raised by the Revenue is dismissed.

Read Order

Tags:  JudgementAppellant TribunalIncome Tax

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