Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Depreciation under incometax act

G Parthasarathy (Finance Professional) (43 Points)

19 June 2013

I want to know in which year depreciation on UPS and Printers brought under 15% block.

If any notification/Circular ref availble

Reply
Follow
Share

3 Replies

Ishan kewlani (Article) (172 Points)
Replied 19 June 2013

Dep. @ 60% will be applied.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Momin Owais Ahmed (Audit Manager) (154 Points)
Replied 20 June 2013

In Oct 2009 the same Querry was raised, one of our club Member answer it as follows,

In IPCC Exam , Correcr Answer for Depreciation on Printer was 15% under residuary Plant & Machinery Catagory.

In my Openion it should be 15% on both UPS & Printer, they are only part of Computer, 60% Depreciation is allowed on Computing Devices, UPS & Printer are not Computing Devices. So, its better to take 15% Depreciation.

Ishan kewlani (Article) (172 Points)
Replied 20 June 2013

In below cases courts have decided to give 60% dep. rate as they are essential part of computer system & cannot be used without computer

- DCIT Vs. Datacraft India Ltd. (I.T.A. Nos.7462 & 754/Mum/2007),

- CIT Vs. BSES Rajdhani Powers Ltd. (I.T.A. No.1266 of 2010)(Delhi).

- Expeditors International (India)(P) Ltd. Vs. ACIT (118 TTJ 652), (Delhi ITAT).

- Income-tax Officer Vs. Samiran Majumdar (98 ITD 119), (Kolkatta ITAT).

- CIT Vs. Karnataka Power Corporation (2011) 247 ITR 268 (Supreme Court).

- M/s Accenture Services Pvt. Ltd. (I.T.A. No.3697/Mum/2008). - ACIT Vs. Continental Carriers (P) Ltd. (I.T.A. No.2137/D/2008). - ACIT Vs. M/s Cincom System India Pvt. Ltd. (I.T.A. No.1534/d/2008).

- Container Corporation of India Ltd. Vs. ACIT (I.T.A. No.2753,2851,3680,3775 and 4477).

17. This issue has been discussed and decided in a number of cases by the jurisdictional ITAT as well as Delhi High Court, wherein it has been held that the computer accessories and peripherals, printer and scanner, UPS etc are entitled to higher rate depreciation @ 60% on the ground that such accessories and peripherals form an essential part of the computer systems and the same cannot be used without the computer. The Assessing Officer is, therefore, directed to allow depreciation on UPS, printers and scanner etc. @ 60% as claimed by the appellant."