ACIT, New Delhi V. M/s. Computer Junction Pvt. Ltd, Azadpur

ITA 3342/DEL/2009

• Counselvise Citation: [2009] 114 COUNSELVISE.COM (IT) 9571 (ITAT-DELHI)
• Duration Of Justice: 2 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2006-2007
• Appeal Filed On: 27-07-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK MITTAL
• Assessee Lawyers: A K MITTAL
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G : NEW DELHI BEFORE SHRI A.D.JAIN, JM AND SHRI R.C.SHARMA, AM ITA NO.3342/DEL/2009 ASSESSMENT YEAR : 2006-07 ASSTT.COMMISSIONER OF INCOME TAX, CIRCLE-3(1), NEW DELHI. VS. M/S COMPUTER JUNCTION PVT.LTD., G1-6, G.T.KARNAL ROAD, INDUSTRIAL AREA, AZADPUR 110 033. PAN NO.AABCC5990R. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHOK MITTAL, SR.DR. RESPONDENT BY : SHRI A.K.MITTAL, CA. ORDER PER R.C.SHARMA, AM : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) DATED 20.7.2009 FOR THE AY 2006-07, IN THE MATTER OF ALLO WING DEPRECIATION ON COMPUTER SOFTWARE AND ACCESSORIES. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PER USED. FACTS IN BRIEF ARE THAT THE ASSESSEE HAD PURCHASED COMPUTERS SYSTEMS A ND ITS ASSOCIATED ACCESSORIES, IN AGGREGATE WORTH RS.2,26,77,708/- WHICH INCLUDES COMPUTER ACCESSORIES, CONSISTING OF ITEMS SUCH AS KEYBOARDS, MOUSE, MONIT ORS, DVD WRITERS, UPS, MODEM ETC. WHICH WORK IN TANDEM AND WITH CPUS INST ALLED WITHIN THE COMPUTER SYSTEMS. IT WAS SUBMITTED THAT A MACHINE OR ANY SY STEM IS TO BE CONSIDERED IN ITS TOTALITY AND AS A WHOLE WHICH WILL JUSTIFY ITS FUNC TIONALITY AND ITS USEFULNESS AND IT WILL BE INCORRECT TO BREAK THE COMPUTER SYSTEM INTO COMPONENTS AND PARTS AND DISCUSS THE ROLE OF EACH PART SEPARATELY AND CONFIN E THE COMPUTER TO A MERE BOX IN ISOLATION. WE FOUND THAT VARIOUS ACCESSORIES AND P ERIPHERALS SUCH AS PRINTERS, SCANNERS, MONITORS KEYBOARDS, UPS, INPUT OUTPUT STO RAGE DEVICES ETC. ARE ESSENTIAL PARTS OF A COMPUTER SYSTEM AND NECESSARY FOR ITS OP ERATION. DEPRECIATION ON ITA-3342/D/2009 2 COMPUTER ACCESSORIES IS ALLOWABLE AT THE RATE OF 60 %. WHILE ALLOWING THE CLAIM OF DEPRECIATION AT 60% IN PLACE OF 15% ALLOWED BY THE AO, RELIANCE WAS PLACED BY CIT(A) ON THE CASES OF ITO VS. SAMIRAN MAJUMDAR 9 8 ITD 119 (KOLKATTA) AND ACIT VS. CONTAINER CORPORATION OF INDIA LTD. (DELHI ITAT) IN ITA NO.2851 & 3680/DEL/2007. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(A) FOR ALLOWING THE CLAIM ON DEPRECIATION AT 60% IN VIEW OF THE FIN DING RECORDED BY HIM IN PARA 3 & 4 OF HIS APPELLATE ORDER WHICH HAS NOT BEEN CONTR OVERTED BY LEARNED DR. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. DECISION PRONOUNCED IN THE OPEN COURT ON CONCLUSION OF HEARING ON 29 TH SEPTEMBER, 2009. SD/- SD/- (A.D.JAIN) (R.C.SHARMA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 29.09.2009. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT DEPUTY REGISTRAR