DCIT Corporate Circle 1(2), CHENNAI V. Cameo Corporate Services Ltd., CHENNAI

ITA 3210/CHNY/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 7454 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 28-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR SREEDHAR IRS
• Keywords: Depreciation

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , !' . #$#% , & '' ( [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ] ./I.T.A. NO.3210/CHNY/2017 / ASSESSMENT YEAR : 2011-2012. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 1(2) CHENNAI 600 034. VS. M/S. CAMEO CORPORATE SERVICES LTD, SUBRAMANIAN BUILDING, NO.1, CLUB HOUSE ROAD, MOUNT ROAD, CHENNAI 600 002. [PAN AABCC 1754B] ( )* / APPELLANT) ( +,)* /RESPONDENT) / APPELLANT BY : DR. SREEDHAR, IRS, JCIT. /RESPONDENT BY : NONE /DATE OF HEARING : 16-07-2018 ! /DATE OF PRONOUNCEMENT : 16-07-2018 / O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER IN THIS APPEAL FILED BY THE REVENUE, WHICH IS DIR ECTED AGAINST AN ORDER DATED 31.10.2017 OF LD. COMMISSIONER OF IN COME TAX (APPEALS)-1, CHENNAI, IT IS AGGRIEVED THAT LD. CO MMISSIONER OF INCOME TAX (APPEALS) ALLOWED THE CLAIM OF DEPRECIATION AT THE RATE OF 60% ON COMPUTER PERIPHERAL DEVICES LIKE PRINTERS, SCANNER S AND UPS. ITA NO.3210/CHNY/2017 :- 2 -: 2. LD. COUNSEL FOR THE REVENUE SUBMITTED THAT COMPUTER PERIPHERAL DEVICES LIKE PRINTERS, SCANNERS AND UPS COULD NOT BE CONSIDERED AS EQUIVALENT TO COMPUTERS. AS PER THE LD. DEPARTMENTAL REPRESENTATIVE, ASSESSEE, DURING THE RELEVANT PREV IOUS YEAR HAD ADDITION OF @2,59,22,165/- UNDER THE HEAD COMPUTE RS AND A PART OF SUCH ADDITION COMPRISED OF PRINTERS, SCANNERS AND UPS. CONTENTION OF THE LD. DEPARTMENTAL REPRESENTATIVE WAS THAT ASSE SSEE HAD CLAIMED DEPRECIATION OF @57,47,216/- ON SUCH ITEMS AT THE RATE OF 60% AVAILABLE TO COMPUTERS, WHEREAS WHAT WAS ALLOWABLE WAS ONLY @14,36,804/- AT THE RATE OF 15% AVAILABLE FOR OFF ICE EQUIPMENT. CONTENTION OF THE LD. DR WAS THAT LD. COMMISSIONE R OF INCOME TAX (APPEALS) FELL IN ERROR IN DELETING THE DISALLOWANC E OF @43,10,412/- MADE BY THE LD. ASSESSING OFFICER, ON THE ENHANCED DEPRECIATION CLAIMED FOR PRINTERS, SCANNERS AND UPS. AS PER THE LD. DEPARTMENTAL REPRESENTATIVE, LD. COMMISSIONER OF INCOME TAX (AP PEALS) WAS NOT CORRECT IN RELYING ON THE JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. BSES YAMUNA POWERS LTD, 358 ITR 47 AND GIVING RELIEF TO THE ASSESSEE. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. 4. WE HAVE PERUSED THE ORDERS AND HEARD THE CONTENTION OF THE LD. DEPARTMENTAL REPRESENTATIVE. IT IS NOT DISPUTED THAT DEPRECIATION CLAIMED BY THE ASSESSEE AT THE RATE OF 60%, WHICH WAS DISALLOWED BY ITA NO.3210/CHNY/2017 :- 3 -: THE LD. ASSESSING OFFICER WERE ON UPS, SCANNERS A ND PRINTERS. IT IS ALSO NOT DISPUTED THAT THESE WERE USED AS PERIPHERA LS TO THE COMPUTER. LD. COMMISSIONER OF INCOME TAX (APPEALS) RELIED ON THE JUDGMENT OF HONBLE DELHI HIGH COURT IN THE CASE OF BSES YAMUNA POWERS LTD (SUPRA), WHEREIN IT WAS HELD THAT COMPUTER ACCESSORIES AND PERIPHERALS SUCH AS PRINTERS, SCANNERS AND SERVERS FORMED INTEGRAL PART OF COMPUTER SYSTEM AND WERE ENTITLED FOR 60% DEPRE CIATION. WE ARE OF THE VIEW THAT LD. COMMISSIONER OF INCOME TAX (AP PEALS) WAS JUSTIFIED IN RELYING ON THE JUDGMENT OF HONBLE DEL HI HIGH COURT IN THE CASE OF BSES YAMUNA POWERS LTD (SUPRA) IN HOLDING THAT ASSESSEE WAS ELIGIBLE FOR DEPRECIATION AT THE RATE OF 60% ON UP S, SCANNERS AND PRINTERS. IN TAKING THIS VIEW, WE ARE ALSO ROBORAN TED BY THE JUDGMENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF DINAMALAR VS. ITO, 389 ITR 94, WHEREIN THEIR LORDSHIPS UPHELD THE ORDER OF THE LOW ER AUTHORITIES ALLOWING DEPRECIATION ON ITEMS LIKE CANNON LIDE, SCANNER, SISCO ROUTER, MODEM AT THE RATE OF 60% AVAILABLE TO COMPUTERS. THEIR LORDSHIP HAD ACCEPTED THE CLAIM OF HIGHER DEPRECIAT ION ON CANNON LIDE, SCANNER, SISCO ROUTER AND MODE, WHILE HOLDING THAT SUCH HIGHER RATE OF DEPRECIATION WOULD NOT BE AVAILABLE TO ITEMS LIK E COMPUTERISED COUNTING AND STACKING MACHINE. VIEW TAKEN WAS THAT FORMER ITEMS WERE INTEGRAL TO THE COMPUTER SYSTEMS WHEREAS LATTE R ITEM WAS AN INDEPENDENT ONE. CONSIDERING ALL THESE, WE DO NOT FIND ANY REASON TO ITA NO.3210/CHNY/2017 :- 4 -: INTERFERE WITH THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS). 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DI SMISSED. ORDER PRONOUNCED ON MONDAY, THE 16 TH DAY OF JULY, 2018, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( !' . #$#% ) (ABRAHAM P. GEORGE) & / ACCOUNTANT MEMBER '# / CHENNAI $% / DATED: 16TH JULY, 2018. KV %& '()( / COPY TO: 1 . / APPELLANT 3. *+, / CIT(A) 5. (-. / / DR 2. / RESPONDENT 4. * / CIT 6. .01 / GF