The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that UPS is an integral part of the computer and is entitled to 60% depreciation.
The bench of Sudhir Pareek (Judicial Member) and S Rifaur Rahman (Accountant Member) has observed that computer accessories and peripherals such as, printers, scanners and server etc. form an integral part of the computer system. In fact, the computer accessories and peripherals cannot be used without the computer. Consequently, as they are the part of the computer system, they are entitled to depreciation at the higher rate of 60%.
The return of income was filed declaring total income of Rs. 8,77,05,840, which was processed under section 143(1). The case was selected for scrutiny and in persuasion statutory notice under section 143(2) and 142(1) of the Income Tax Act was served and after completing the assessment proceedings, the Assessing Officer (AO) computed total income as Rs. 29,15,00,876 by making addition in different heads.
The AO held that the UPS is not an integral part of the computer.
The CIT(A) deleted the addition of Rs. 17,263/- made by disallowing the excess depreciation of computer peripherals.
The department contended that CIT(A) erroneously deleted the addition of Rs. 17,263/- made by disallowing the excess depreciation of computer peripherals by ignoring that the depreciation computer peripherals allowed to at the rate of 15% and not 60%.
The court upheld the order of the CIT(A).
Case Details
Case Title: Jubilant Enpro Private Versus Commissioner of Income Tax Circle
Case No.: ITA Nos:- 3197 and 3198/Del/2011
Date: 28.02.2025
Counsel For Appellant: Shashvat Dhamija
Counsel For Respondent: Dayainder Singh Sidhu
Read More: This CBDT Circular Bars Tax Dept. From Exploiting Ignorance Of Taxpayers
