ACIT, New Delhi V. M/s. Datasoft Computer Services (P) Ltd., New Delhi

ITA 1150/DEL/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 65429 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-09-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 18-09-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 06-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRITHI LAL
• Assessee Lawyers: ADITYA AGGARWAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH B NEW DELHI BEFORE SHRI JOGINDER SINGH: JUDICIAL MEMBER & SHRI SHAMIM YAHYA: ACCOUNTANT MEMBER ITA NO. 1150/DEL/12 A.YRS. 2008-09 ACIT, CIRCLE 10(1), VS. M/S DATASOFT COMPUTER SE RVICES NEW DELHI. (P) LTD., E-67(LGF), MASJID MOTH, G.K. III, NEW DELHI. PAN: AAACD 6836 A ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI PRITHI LAL SR. DR RESPONDENT BY : SHRI ADITYA AGGARWAL CA O R D E R PER JOGINDER SINGH, J.M: : THE REVENUE IS AGGRIEVED BY THE IMPUGNED ORDER DATE D 12-11-2011 PASSED BY THE LD. FIRST APPELLATE AUTHORITY NEW DEL HI ON THE GROUND WHETHER THE LD. CIT(A) WAS JUSTIFIED IN ALLOWING 60% DEPRE CIATION ON COMPUTER SCANNER AGAINST THE NORMAL RATE OF 15% ALLOWED BY T HE ASSESSING OFFICER . 2. DURING HEARING WE HAVE HEARD SHRI PRITHI LAL LD. SR. DR AND SHRI ADITYA AGGARWAL CA LEARNED COUNSEL FOR THE ASSESSEE . ITA 1150/DEL/12 DATASOFT COMPUTER SERVICES (P) LTD. 2 3. AT THE OUT SET THE LEARNED COUNSEL FOR THE ASSES SEE CLAIMED THAT THE IMPUGNED ISSUE IS COVERED BY THE DECISION OF THE IT AT IN THE CASE OF EXPEDITORS INTERNATIONAL (INDIA) P. LTD. VS. ADDL. CIT (ITA NO. 2684/DEL/2005); AS WELL AS BY THE DECISION OF HON BLE DELHI HIGH COURT IN THE CASE OF CIT VS. BONANZA PORTFOLIO LTD. ( ITA NO . 833 OF 2011). THIS FACTUAL MATRIX WAS NOT CONTROVERTED BY THE REVENUE, EXCEPT PLACING RELIANCE UPON THE ASSESSMENT ORDER. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. 4.1. THE FACTS, IN BRIEF, ARE THAT THE ASSESSEE CLA IMED DEPRECIATION ON SCANNER @ 60% WHEREAS THE ASSESSING OFFICER RESTRI CTED THE CLAIM OF DEPRECIATION TO 15% BY TREATING THE SAME AS PLANT & MACHINERY. THE CLAIM OF THE ASSESSEE IS THAT THE ASSESSEE IS IN THE BUSINES S OF DATA PROCESSING AS AN EDP CENTRE AND USES THE SCANNER MERELY AS ATTACHMEN T TO THE COMPUTERS FOR THE PURPOSE OF LOADING THE DATA AND AS SUCH THE DEP RECIATION IS ALLOWABLE AT 60%. HOWEVER, LD. ASSESSING OFFICER DID NOT ALLOW THE SAME. 4.2. ON APPEAL, THE LD. CIT(A) CONSIDERED THE DEC ISION OF SPECIAL BENCH OF ITAT MUMBAI IN THE CASE OF M/S DATACRAFT INDIA LTD. VS. DCIT IN ITA NOS. 7462 & 754/MUM/2007 ORDER DATED 9-7-2010 AND T HE DECISION OF THE ITAT DELHI BENCH IN THE CASE OF ACIT VS. CONTAINER CORPORATION OF INDIA LTD. (ITA NOS. 2851 & 3680/DEL/2007) ORDER DATED 27 -2-2009 AND ALLOWED THE CLAIM OF DEPRECIATION @ 60%. ITA 1150/DEL/12 DATASOFT COMPUTER SERVICES (P) LTD. 3 4.3. IF THE TOTALITY OF THE FACTS AND CIRCUMSTANCES ARE PERUSED, WE FIND NO JUSTIFICATION TO INTERFERE WITH THE CONCLUSION DRAW N IN THE IMPUGNED ORDER AS THE TRIBUNAL IN THE AFORESAID CASES HAS DELIBERATED UPON THE ISSUE AT GREAT LENGTH AND HELD THAT THE ASSESSEE IS ENTITLED TO DE PRECIATION @ 60%. IT IS NOT THE CASE THAT THE COMPUTER SCANNER IS THE INBUILT P ART OF THE COMPUTER, RATHER IT WAS AN ATTACHMENT TO THE COMPUTER. THIS FACTUAL FINDING WAS NOT CONTROVERTED BY THE REVENUE. THEREFORE, THE STAND O F THE LD. CIT(A) IS AFFIRMED, RESULTING INTO DISMISSAL OF THE APPEAL OF THE REVENUE. 5. FINALLY, THIS APPEAL OF THE REVENUE IS DISMISSED ORDER PRONOUNCED IN OPEN COURT IN THE PRESENCE OF L D. AUTHORIZED REPRESENTATIVES OF BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 18-09-2012. SD/- SD/- ( SHAMIM YAHYA ) ( JOGINDER SINGH ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 18-09-2012. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR ITA 1150/DEL/12 DATASOFT COMPUTER SERVICES (P) LTD. 4