M/s Kodiak Networks (India) Private Limited , Bangalore V. The Deputy Commissioner of Income Tax Circle-4(1)(1), Bangalore

ITA 1403/BANG/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 9720 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 02-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NARENDRA JAIN
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, JUDICIAL MEMBER AND SHRI A.K. GARODIA , ACCOUNTANT MEMBER I TA NO S . 1403 & 1404/BANG/2018 ASSESSMENT YEAR S : 2015 - 16 & 2014 - 15 M/S. KODIAK NETWORKS (INDIA) LTD., 9 TH FLOOR, MFAR MANYATA TECH PARK, GREENHEART PHASE IV, NAGWARA, BANGALORE 560 045. PAN: AACCK 0978J VS. THE DEPUTY /ASST. COMMISSIONER OF INCOME TAX, CIRCLE 4(1)(1), BANGALORE. APPELLANT RESPONDENT APPELLANT BY : SHRI NARENDRA JAIN, ADVOCAT E RE SPONDENT BY : SHRI SIDDAPPAJI R.N., ADDL.CIT(DR)(ITAT), BENGALURU . DATE OF HEARING : 29 .0 8 .201 8 DATE OF PRONOUNCEMENT : 24. 09.2018 O R D E R PER N.V. VASUDEVAN, JUDICIAL MEMBER THESE ARE APPEALS BY THE ASSESSEE AGAINST TWO OR DERS BOTH DATED 8.3.2018 OF CIT(APPEALS)-4, BENGALURU, RELATING TO ASSESSMENT YEARS 2014-15 AND 2015-16. 2. THE ONLY DISPUTE RAISED IN THESE TWO APPEALS BY THE ASSESSEE IS WITH REGARD TO THE RATE OF DEPRECIATION ON SERVERS. IF SERVERS ARE REGARDED AS PART OF COMPUTER THEN DEPRECIATION HAS TO BE ALLOWE D AT 60%. THE CASE OF THE REVENUE IS THAT SERVERS ARE NOT PART OF COMPUTE R AND HAVE TO BE REGARDED AS PLANT AND MACHINERY ELIGIBLE FOR DEPREC IATION ONLY AT 15%. THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. BSES YAMUNA POWER LTD. ITA NOS. 1403 & 1404/BANG/2018 PAGE 2 OF 2 358 ITR 47 (DEL.) HAS TAKEN THE VIEW THAT COMPUTER ACCESSORIES AND PERIPHERALS SUCH AS PRINTERS, SCANNERS AND SERVER E TC., FORM INTEGRAL PART OF COMPUTER SYSTEM AND HENCE THEY ARE ENTITLED TO DEPR ECIATION AT 60%. FOLLOWING THE AFORESAID DECISION, WE HOLD THAT THE ASSESSEE IS ENTITLED TO DEPRECIATION AT 60% ON SERVERS. 3. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE A RE ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS 24 TH DAY OF SEPTEMBER, 2018. SD/- SD/- ( A.K. GARODIA ) ( N.V. VASUDEVAN ) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 24 TH SEPTEMBER, 2018. / D ESAI S MURTHY / COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. T HE CIT(A) 5. THE DR, ITAT, BANGALORE. 6 . GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY ITAT, BANGALORE.