Mr. Sumit Dev, New Delhi V. ITO, New Delhi

ITA 6197/DEL/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3604 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Next Hearing Date: 11-04-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 19-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BEDOBANI CHAUDHARI
• Assessee Lawyers: R S AHUJA
• Keywords: Depreciation
• Section: 133(6); 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL , DELHI G BENCH , NEW DELHI BEFORE SHRI R.K. PANDA ACCOUNTANT MEMB E R AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER ITA NO. 6197 /DEL /201 3 [ ASSESSMENT YEAR: 20 0 9 - 10 ] SHRI SUMIT DEV PROP M/S INDIA SIGNS CORPORATION B - 21, FRIENDS COLONY WEST NEW DELHI PAN : ADJPD 2589 D VS. THE I.T. O WARD 22(3) NEW DELHI (APPELLANT) (RESPONDENT) ITA NO. 6278/DEL/2015 [ASSESSMENT YEAR: 2011 - 12] SHRI SUMIT DEV PROP M/S INDIA SIGNS CORPORATION B - 646, NEW FRIENDS COLONY NEW DELHI PAN : ADJPD 2589 D VS. THE I.T.O WARD 22(1) NEW DELHI (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI R.S. AH UJA , ADV R EVENUE BY: S MT . BEDOBANI CHAUDHARI , SR. DR DATE OF HEARING : 1 1 .0 4 .2017 DATE OF PRONOUNCEMENT : 25 .0 4 .2017 2 ORDER PER R.K. PANDA , ACCOUNTANT MEMBER : - ITA NO. 6197/DEL/2012 FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 2 0 .0 9 .201 3 OF THE CIT(A) - XXIII , NEW DELHI RELATING TO A.Y. 200 9 - 1 0 WHEREAS ITA NO. 6278/DEL/2015 FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 14 .0 9 .201 5 OF THE LD. CIT(A), NEW DELHI RELATING TO A.Y 2011 - 12. FOR THE SAKE OF CONVENIENCE, BOTH THE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER. ITA NO. 6197/DEL/2013 [A.Y 2009 - 10] 2. THE LD. COUNSEL FOR THE ASSESSEE DID NOT PRESS GROUND OF APPEAL NO. 1 FOR WHICH THE LD. DR HAS NO OBJECTION. ACCORDINGLY GROUND OF APPEAL NO. 1 IS DISMISSED AS NOT PRESSED. 3. GROUND OF AP PEAL NO. 2 OF THE ASSESSEE READS AS UNDER: THE LD. CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE MADE BY THE A.O OF DEPRECIATION CLAIMED BY THE APPELLANT UNDER THE HEAD COMPUTERS, SUB HEAD PRINTER FOR RS. 22,72,510/ - BEING 60% DEPRECATION AMOUNT AS APP LICATION ON COMPUTER PERIPHERAL AND 3 NOT PLANT AND MACHINERY AS TREATED BY THE A.O WHO HAS ALLOWED A DEPRECIATION OF RS. 15% ON THE SAME INSTEAD OF 6 - 5 AS CLAIMED BY THE APPELLANT. 4. FACTS OF THE CASE, IN BRIEF ARE THAT THE ASSESSEE IS A N INDIVIDUAL HAVING BUSINESS OF IMPORT, EXPORT AND TRADING OF COMPUTER PRINTERS AND COMPUTER COMPONENTS AND DERIVED INCOME FROM THE SAME ALONGWITH HOUSE PROPERTY. HE FILED HIS RETURN OF INCOME ON 30.09.2009 DECLARING AN INCOME OF RS. 20,37,090/ - . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O OBSERVED THAT THE ASSESSEE HAS DEBITED AN AMOUNT OF RS. 31,92,40 9 / - UNDER THE HEAD DEPRECIATION . IN THE BALANCE SHEET UNDER THE HEAD FIXED ASSET, THERE IS A SUB HEAD PRINTER WHEREIN THE ASSESSEE HAS SHOWN ADDITION OF RS. 50,61,465/ - AND CLAIMED DEPRECIATION OF RS. 30,37,129/ - @ 60% ON SUCH PRINTER . THE A.O, THEREFORE, ASKED THE ASSESSEE TO JUSTIFY THE CLAIM OF DEPRECATION @ 60@ ON SUCH PRINTERS. THE ASSESSEE SUBMITTED A COPY OF BILL OF THE SAME ISSUED BY MS CALDRON GRAPHICS WHEREIN DESCRIPTION OF THE PRODUCT WAS GIVEN AS CJF - 9312SPT 510 INKJET PRINTER . THE A.O ALSO ISSUED A NOTICE U/S 133(6) OF THE INCOME - TAX ACT, 1961 TO M/S CALDRON GRAPHICS WHO CONFIRMED TO HAVE SOLD THE ABOVE GOODS TO THE ASSESSEE ALONGWITH LE DGER ACCOUNT. SINCE THE AMOUNT OF RS. 50,61,465 / - WAS UNUSUALLY HIGH, THE A.O DEP UTED AN INSPECTOR OF THE 4 WARD TO CONDUCT NECESSARY ENQUIRY FROM M/S CALDRON GRAPHICS TO UNDERSTAND THE PRODUCT AND ITS USE AND CATEGORY FOR CLAIMI NG DEPRECIATION AS PER THE IN COME - TAX ACT . 5. THE INSPECTOR REPORTED THAT THE PREMISE OF THE ASSESSEE IS LOCATED AT F - 3/13, OKH L A INDUSTRIAL AREA, PHASE - 1, NEW DELHI. THEY ARE DEALING IN TRADING OF PRODUCTS USED IN PRINTING FOR ADVERTISEMENT LIKE PRINTING MACHINES ON ACRYLIC, PRIN T HEADS , RELATED CARTRIDGES AND OTHER ALLIED PRODUCTS AND ALL THE PRODUCTS SOLD BY THEM ARE USED FOR COMMERCIAL PURPOSES ONLY. THE SIZE OF THE PR INTER IS ABOUT 10* 4 * 2 FEET [L*H*W]. IT HAS ABOUT 10 HEADS. IT HAS SPACE FOR CPU AND MONITOR TO BE ATTACHED W ITH IT . THE COMMANDS ARE GIVEN BY THE COMPUTER SYSTEM ATTACHED TO IT AND THE PRINTER PRINTS THE MATERIAL AS DESIRED. IT REQUIRES ONCE ATTENDANT TO MONITOR THE WHOLE PROCESS. THE INSPECTOR ALSO VIS I TED THE PREMISES OF SHRI SUMIT DEV AND FOUND THAT NO SUCH MACHINE WAS INSTALLED AT THE PREMISES OF THE ASSESSEE AND AS PER THE SET UP OF THE OFFICE, IT SEEMS THAT T HE OFFICE IS USED FOR TRADING PURPOSES ONLY AND NO PRINTING WORK IS DONE. THE A.O, THEREFORE, ISSUED NOTICE U/S 131 OF TH E ACT TO SHRI SUMIT DEV WHO APPEARED BE FORE THE A.O AND DEPOSED AS UNDER: 5 1. THAT HE DEALS IN INKJET PRINTER, PRINT HEADS AND ALLIED PRODUCTS LIKE SOFTWARE. 2. HE HAS BEEN INTO THIS BUSINESS FOR MORE THAT FIVE YEARS AND THERE HAS BEEN NO CHANGE IN THE NATURE OF BUSINESS. 3. THAT THE PRINTER IN QUESTION WAS PURCHASED FOR USE IN EXHIBITIONS FOR THE PURPOSE OF MARKETING. 4. THAT PRINTER IS USED TO PAPER AND OTHER MEDIA . 5, THAT THE PRINTER IS KEPT AT GO DOWN OF THE ASSESSEE AT 347, UDYOG KENDRA, GREATER NOIDA, U.P 6. THAT THE PRINTER IS USED FOR OWN OFFICIAL MARKETING PROPOSE IN EXHIBITION AND DEMONSTRATIONS AND NO PRINTING IS DO NE WITH IT TO GENERATE REVENUE. 6. FROM THE ABOVE, THE A.O OBSERVED THAT PR ODUCT/PRINTER WAS PURCHASED BY THE ASSESSEE FROM M/S CALDRON GRAPHICS DURING THE F.Y. 2008 - 09 AND THE SAME IS USED BY THE ASSESSEE AT EXHIBITIONS AND DEMONSTRATION TO PROSPECTIVE BUYERS. HE OBSERVED THAT THE PRINTER IS NOT A BLOCK AT WHICH THE DEPRECIATIO N COULD BE CHARGED AS PER THE PROVISIONS OF THE ACT. HE, THEREFORE, AGAIN ASKED THE ASSESSEE TO JUSTIFY THE RATE OF DEPRECIATION CHARGED ON THE PRINTING MACHINE/PRINTER @ 60%. REJECTING THE VARIOUS EXPLANATIONS GI VE N BY 6 THE ASSESSEE, THE A.O DISALLOWED T HE CLAIM OF DEPRECIATION @ 60% AND INSTEAD, ALLOWED DEPRECATION @ 15%. WHILE DOING SO, HE OBSERVED THAT THE CLAIM OF DEPRECIATION BY TREATING THE PRODUCT AS COMPUTER PERIPHERAL IS NOT JUSTIFIED. ACCORDING TO HIM, TO DECIDE THE REAL CHARACTER OF THE ASSET NOMENCLATURE IS NOT IMPORTANT . W HAT IS SIGNIFICANT IS TO TRULY EXAMINE THE CHARACTER OF ASSET FROM ITS ACTUAL USAGE POINT OF VIEW AND NOT THE NAME OF THE ASSET PER SE. HE HELD THAT THE ASSET IN QUESTION WAS IN THE NATURE OF PLANT AND MACHINERY USED BY THE ASSESSEE AS OFFICE EQUIPMENT FOR THE PURPOSE OF DEMONSTRATION AND EXHIBITIONS. 7. BEFORE THE LD. CIT(A), THE ASSESSEE RELIED ON NOMENCLATURE OF THE MACHINE AS PRINTER. RELYING ON THE DECISION OF THE HON'BLE JURISDICTIONAL HIGH COURT OF DELHI IN THE CASE OF CONTAINER CORPORATION OF INDIA LTD VS. ACIT REPORTED IN [2009] 30 SOT 284 [DEL], IT WAS ARGUED THAT THE ASSESSEE IS ENTITLED TO DEPRECATION @ 60% ON THE PRINTER. 8. HOWEVER, THE LD. CIT(A) W AS ASLO NOT SATISFIED WITH THE ARGUMENTS ADVANCED BY THE ASSESSEE. HE HELD THAT THE DECISION RELIED ON BY THE ASSESSEE IS NOT APPLICABLE TO THE FACTS OF THE PRESENT CASE. ACCORDING 7 TO HIM, THE VOLUME, WEIGHT AND DIMENSIONS OF THE SO CALLED PRINTER ARE SUCH THA T IT CANNOT BE TREATED AS A COMPUTER PERIPHERAL BY ANY STRETCH OF IMAGINATION. ACCORDING TO HIM, IT WOULD BE AN ABSURDITY IF A RS. 50 LAKHS MACHINE IS TREATED AS A COMPUTER PERIPHERAL WHILE THE COMPUTER ITSELF IS COSTING 1% OF THE SAME. IT WOULD TANT AMOUNT TO THE TAIL WAGGING THE DOG, INSTEAD OF THE DOG WAGGING THE TAIL. ACCORDINGLY, HE HELD THAT THE A.O HAS RIGHTLY CONSIDERED THE PRINTER UNDER THE HEAD PLANT AND MACHINERY AND HAS ALLOWED DEPRECATION @ 15% AS AGAINST 60% CLAIMED BY THE ASSESSEE . HE ACCORDINGLY DISMISSED THE GROUND RAISED BY THE ASSESSEE ON THIS ISSUE. 9. AGGRIEVE D WITH SUCH ORDER OF THE LD. CIT(A), THE ASSESSEE IS IN APPEAL BEFORE US. 10. THE LD. COUNSEL FOR THE ASSESSEE STRONGLY OBJECTED TO THE ORDER OF THE LD. CIT( A). HE SUBMITTED THAT THE A.O DID NOT ALLOW HIGHER RATE OF DEPRECIATION ON THE GROUND THAT THE MACHINE WAS NOT A NORMAL PRINTER BUT A HEAVY DUTY PRINTER WHICH CAN PRINT ON MEDIA MAINLY FLEX, PVC VINYLE, ONE WAY VISION , MESH ETC. AND SIZE OF THE PRINTER WA S VERY BIG WEIGHING ABOUT 1200 KG AND THAT THE ASSESSEE WAS NOT IN THE BUSINESS OF PRINTING AND WAS DOING BUSINESS OF TRADING AND THE MACHINE WAS USED 8 FOR DEMONSTRATION PURPOSES. ACCORDING TO THE LD. CIT(A), THE VOLUME, WEIGHT AND DIMENSION OF THE PRINTER IS SUCH THAT IT CANNOT BE TREATED AS A COMPUTER PERIPHERAL BY ANY STRETCH OF IMAGINATION. ACCORDING TO HIM, THE COST OF THE PRINTER IS ABOUT 50 LAKHS WHEREAS THE COST OF THE COMPUTER IS NEGLIGIBLE AND THEREFORE, THE SAME CANNOT BE ELIGIBLE FOR PROFIT RATE OF DEPRECIATION @ 60%. 11. REFERRING TO THE DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. BSES YAMUNA POWERS LTD REPORTED AT [2013] 358 ITR 0047 [DEL], HE SUBMITTED THAT THE HON'BLE DELHI HIGH COURT IN THE SAID DECISION HAS HELD THAT C OMPUTER ACCESSORIES AND PERIPHERALS CANNOT BE USED WITHOUT COMPUTER AS THEY ARE PART OF COMPUTER SYSTEM AND , THEREFORE, THEY ARE ENTITLED TO DEPRECIATION AT HIGHER RATE OF 60%. 12. REFERRING TO THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. KARNATAKA POWER CORPORATION REPORTED IN [2001] 247 ITR 0268, HE SUBMITTED THAT THE HON'BLE SUPREME COURT IN THE SAID CASE HAS HELD THAT POWER GENERATING STATION BUILDING WHICH IS AN INTEGRAL PART OF ASSESSEES GENERATING SYSTEM HAS TO BE TREATED AS A PLANT, AND INVESTMENT ALLOWANCE IS ALLOWABLE THEREON. 9 13. REFERRING TO THE DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. CITY CORP MARUTI FINANCE LTD VIDE ITA NO. 1712/2010 AND 1714/2010 ORDER DATED 29.11.2010, HE SUBMITTED THAT THE HON' BLE HIGH COURT IN THE SAID DECISION HAS HELD THAT COMPUTER ACCESSORIES AND PERIPHERALS LIKE PRINTER ARE ELIGIBLE FOR DEPRECIATION @ 60%. 14. REFERRING TO THE DECISION OF THE DELHI BENCH OF THE TRIBUNAL IN THE CASE OF CANNAUGHT PLAZA RESTAURANT PVT. LTD V S. DIT IN ITA NO. 5466/DEL/2013 ORDER DATED 01.09.2014, HE SUBMITTED THAT THE TRIBUNAL HELD THAT POINT OF SALES [POS] ARE ELIGIBLE FOR DEPRECIATION @ 60%. 15. REFERRING TO THE DELHI BENCH OF THE TRIBUNAL IN THE CASE OF EXPEDITORS INTERNATIONAL [INDIA] P . LTD VS. ADDL. CIT REPORTED AT [2008] 118 TTJ 0652 HE SUBMITTED THAT THE TRIBUNAL IN THE SAID DECISION HAS HELD THAT PERIPHERALS SUCH AS PRINTERS, SCANNERS, NT SERVER ETC FORM INTEGRAL PART OF THE COMPUTER AND THE SAME, THEREFORE, ARE ELIGIBLE FOR DEPREC ATION @ 60%. HE ACCORDINGLY SUBMITTED THAT SINCE THE VERY NOMENCLATURE OF THE MACHINE IS PRINTER, THEREFORE, MERELY BECAUSE THE COST OF THE PRINTER IS MORE THAN THAT OF THE COMPUTER AND SINCE THE PRINTER CANNOT WORK WITHOUT THE COMMAND FROM THE COMPUTER, 10 THEREFORE, THE PRINTER IS ELIGIBLE FOR HIGHER RATE OF DEPRECATION @ 60%. HE ACCORDINGLY SUBMITTED THAT THE ORDER OF THE LD. CIT(A) ON THIS IS SUE BE SET ASIDE AND THE GROUND RAISED BY THE ASSESSEE SHOULD BE ALLOWED. 16. THE LD. DR , ON THE OTHER HAND, HEAV ILY RELIED ON THE ORDER OF THE LD. CIT(A). HE SUBMITTED THAT THERE IS NO HEAD CALLED PRINTER. THEREFORE, IT IS NOT UNDERSTANDABLE AS TO ON WHICH HEAD IT IS GOING TO FALL. HE SUBMITTED THAT THE A.O IS FULLY JUSTIFIED IN HOLDING THAT IT IS NOT A COMPUTE R PERIPHERAL AND ONLY A PLANT AND IS ELIGIBLE FOR DEPRECIATION @ 15% AND NOT 60% AS CLAIMED BY THE ASSESSEE. 17. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES, PERUSED THE ORDERS OF THE A.O AND THE LD. CIT(A) AND THE PAPER BOOK FILED ON BE HALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BY BOTH THE SIDES. WE FIND THE ASSESSEE, IN THE INSTANT CASE, HAS PURCHASED AN INKJET PRINTER FROM M/S CALDRON GRAPHICS FOR A COST OF RS. 50,44,000/ - AND CLAIMED DEPRECIATION @ 60 % WHICH IS THE RATE APPLICABLE FOR COMPUTERS AND PRINTERS. WE FIND THE A.O REJECTED THE CLAIM OF HIGHER RATE OF DEPRECIATION @ 60% ON THE GROUND THAT THE MACHINE PURCHASED BY THE ASSESSEE WAS NOT A NORMAL PRINTER BUT A HEAVY DUTY PRINTER WHICH CAN PRINT MEDIA MAINLY FLEX, PVC VINYLE, ONE 11 WAY VISION ETC. THE VOLUME, WEIGHT AND DIMENSION OF THE PRINTER WAS VERY HIGH AND THEREFORE, IT CANNOT BE CALLED A COMPUTER PERIPHERAL. FURTHER, THE ASSESSEE WAS NOT IN THE BUSIN ESS OF PRINTING BUT WAS DOING BUSINESS OF TRADING AND THIS MACHINE WAS USED FOR DEMONSTRATION PURPOSES. HE, THEREFORE, TREATED THIS PRINTER AS NORMAL MACHINE ELIGIBLE FOR DEPRECIATION @ 60% , WHICH HAS BEEN UPHELD BY THE LD. CIT(A). IT IS THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ASSESSEE HAS PURCHASED A PRINTER WHICH HAS BEEN USED BY THE ASSESSEE FOR THE PURPOSES OF ITS BUSINESS. MERELY BECAUSE THE COST OF THE PRINTER IS VERY HIGH AS COMPARED TO THAT OF A COMPUTER, THEREFORE , HIGHER RATE OF DEPRECIATION CANNOT BE DENIED ON THAT GROUND. WE FIND MERIT IN THE ABOVE ARGUMENTS OF THE LD. COUNSEL FOR THE ASSESSEE. IT IS AN ADMITTED FACT THAT THAT THE PRINTER HAS BEEN USED BY THE ASSESSEE FOR THE PURPOSES OF ITS BUSINESS. IT IS ALSO ADMITTED FACT THAT T HE PRINTER CANNOT FUNCTION WITHOUT THE COMMAND FROM THE COMPUTER. THEREFORE, MERELY BECAUSE THE COST OF THE PRINTER IS ABNORMALLY HIGH, THE SAME , IN OUR OPINION, CANNOT BE GROUND TO DENY HIGHER RATE OF DEPRECATION @ 60%. 12 18. WE FIND THE HON'B LE DELHI HIGH COURT IN THE CASE OF CIT VS. BSES YAMUNA POWERS LTD [SUPRA], WHILE DISMISSING THE APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE TRIBUNAL ALLOWING HIGHER RATE OF DEPRECATION @ 60% ON COMPUTER ACCESSORIES AND PERIPHERALS HAS OBSERVED AS UNDER: HOWEVER, UPON A PERUSAL OF THE FILE, WE FIND THAT THE HIGHER RATE OF DEPRECIATION WAS ALLOWED BOTH BY THE COMMISSIONER OF INCOME TAX (APPEALS) 'CIT(A)'] AND THE TRIBUNAL. IN FACT, THE TRIBUNAL IN ITS IMPUGNED ORDER HAS OBSERVED AS UNDER : - 'THE ISS UE INVOLVED IN THIS APPEAL IS COVERED BY THE DECISION OF COORDINATE OF THE TRIBUNAL AS DISCUSSED BELOW: - IN THE CASE OF ITO VS. SAMIRAN MAJUMDAR (2006) 98 ITD 119 (KOL.), ITAT TATA BENCH B , HAS TAKEN A VIEW TH AT THE PRINTER AND SCANNER ARE INTEGRAL PART OF THE COMPUTER SYSTEM AND ARE TO BE TREATED AS COMPUTER FOR THE PURPOSE OF ALLOWING HIGHER RATE OF DEPRECIATION, I.E., 60%. 3.2 THE ITAT, DELHI F BENCH IN THE CASE OF EXPEDITORS INTERNATIONAL (INDIA) (P) LTD. VS. LD. CIT REPORTED IN (2008) 118 TTJ 652 HAS HELD THAT PERIPHERALS SUCH AS PRINTER, SCANNERS, NT SERVER, ETC. FORM INTEGRAL PART OF THE COMPUTER AND THE SAME, THEREFORE, ARE ELIGIBLE FOR DEP RECIATION AT THE RATE OF 60% AS APPLICABLE TO A COMPUTER. 13 4. RESPECTFULLY FOLLOWING THE AFORESAID DECISIONS OF THE COORDINATE BENCH, WE UPHOLD THE ORDER OF LD CIT(A) IN ALLOWING THE DEPRECIATION AT 60% ON COMPUTER PERIPHERALS AND ACCESSORIES, AND, THUS, T HE GROUND RAISED BY THE REVENUE IS REJECTED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED.' 4. WE ARE IN AGREEMENT WITH THE VIEW OF THE TRIBUNAL THAT COMPUTER ACCESSORIES AND PERIPHERALS SUCH AS, PRINTERS, SCANNERS AND SERVER ETC. FORM AN INTEGRAL PART OF THE COMPUTER SYSTEM. IN FACT, THE COMPUTER ACCESSORIES AND PERIPHERALS CANNOT BE USED WITHOUT THE COMPUTER. CONSEQUENTLY, AS THEY ARE THE PART OF THE COMPUTER SYSTEM, THEY ARE ENTITLED TO DEPRECIATION AT THE HIGHER RATE OF 60% PERCENT 1 9. WE FIND THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. CITY CORP MARUTI FINANCE LTD [SUPRA] HAS OBSERVED AS UNDER: 3. IN SO FAR AS SECOND ISSUE IS CONCERNED, IT SHOULD NOT BE DISPUTED BY THE LD. COUNSEL FOR THE REVENUE THAT THIS ISSUE IS NOW SET TLED BY THE JUDGMENT OF THIS COURT IN THE CASE OF COMMISSIONER OF INCOME - TAX VS. BSES YAMUNA POWERS LTD [ITA NO. 1267/2010 DECIDED ON 31.8.2010] HOLDING THAT ON COMPUTERS AND PERIPHERALS, DEPRECATION AT THE RATE OF 60% IS ALLOWABLE. 14 20. VARIOUS OTHER DEC ISIONS RELIED ON BY THE ASSESSEE ALSO SUPPORT THE CASE OF THE ASSESSEE THAT THE PRINTER IS ELIGIBLE FOR HIGHER RATE OF DEPRECATION @ 60%. SINCE IN THE INSTANT C A SE THE PRINTER IS USED BY THE ASSESSEE FOR THE PURPOSES OF ITS BUSINESS AND CANNOT FUNCTION WI THOUT A COMPUTER, THEREFORE, WE ARE OF THE CONSIDERED OPINION THAT THIS PRINTER IS ELIGIBLE FOR HIGHER RATE OF DEPRECATION @ 60%. GROUND RAISED BY THE ASSESSEE IS ACCORDINGLY ALLOWED. 21. ITA NO. 6278/DEL/2015 22. THE ONLY EFFECTIVE GROUND RAISED BY THE ASSESSEE READS AS UNDER: THE LD. CIT(A) HAS ERRED IN UPHOLDING THE DISALLOWANCE MADE BY THE A.O OF DEPRECIATION ON COMPUTER UNDER THE SUB - HEAD PRINTER @ 15% INSTEAD OF 60% AS CLAIMED BY THE ASSESSEE AND HENCE MAKING ADDITION OF RS. 13,88,353/ - ON ACCOUNT OF DIFFERENCE IN DEPRECATION RATE. 23. AFTER HEARING BOTH THE SIDES, WE FIND THE ABOVE GROUND RAISED BY THE ASSESSEE IS IDENTICAL TO THE GROUND OF APPEAL NO. 2 RAISED BY THE ASSESSEE IN ITA NO. 6197 /DEL/201 3 . WE HAVE ALREADY DECIDED THE ISSUE AND THE GROUND RAISED BY THE ASSESSEE HAS BEEN ALLOWED. FOLLOWING THE 15 SAME REASONING THE GROUND RAISED BY THE ASSESSEE IN THIS APPEAL IS ALSO ALLOWED. 24 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO. 6197/DEL/2013 IS PARTLY ALLOWED WHEREAS THE APPEAL IN ITA NO. 6278/DEL/2015 IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 5 .04.2017. S D / - S D / - ( BEENA PILLAI ) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMB E R DATED: 2 5 . 0 4 .2017 V. LAKSHMI COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT (APPEALS) 5) DR: ITAT ASSISTANT REGISTRAR 16 DATE DRAFT DICTATED ON 20 .0 4 .2017 DRAFT PLACED BEFORE AUTHOR 24 .0 4 .2017 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER .0 4 .2017 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS KEPT FOR PRONOUNCEMENT ON FILE SENT TO THE BENCH CLERK .04.2017 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.