ACIT -CC-4(4), MUMBAI, MUMBAI vs. PRIME FOCUS LIMITED, MUMBAI

(A.Y. 2012-13) 2. The solitary issue raised in the present appeal is against the assessee’s claim for depreciation at the rate of 60% on Plant & Machinery. The assessee has claimed depreciation to the tune of Rs. 18.60 crores at the rate of 60% on Plant & Machinery (computer based items). During assessment proceedings, the Assessing Officer (AO) restricted assessee’s claim of depreciation on Plant & Machinery which is in the nature of computers to 15%. The assessee carried the issue in appeal before the CIT(A). The CIT(A) allowed assessee’s claim in full by following the order of his predecessor in AY 2011-12. The CIT(A) further observed that the AO has himself allowed assessee’s claim of depreciation at the rate of 60% on computer base items in AY 2014-15.

Ms. Shreekala Pardeshi representing the Department fairly admitted that the assessee’s claim of depreciation at the rate of 60% was allowed by the CIT(A) in the preceding AY and in succeeding AY the AO has allowed the claim of depreciation in full.

Submissions made by ld. DR heard, orders of the authorities below examined. The assessee has claimed depreciation at the rate of 60% on computer based equipment, which was restricted to 15% by the AO. In First Appellate proceedings, the CIT(A) has allowed the claim of assessee in full after following the order of First Appellate Authority for AY 2011-12. It is further observed that the AO has himself allowed assessee’s claim of depreciation @ 60% on computer based equipment in AY 2014-15. From perusal of the impugned order it is gathered that the issue is perennial. In AY 2005-06, 2007-08 and AYs 2009-10 to 2011-12 the CIT(A) had allowed assessee’s similar claim of depreciation on computer based equipments. In appeal by the Revenue, the Tribunal confirmed the order of First Appellate Authority.