VALJI DUNGERSHI GALA,MUMBAI vs. INCOME TAX OFFICER WARD 17(3)(5), MUMBAI

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ITA 4552/MUM/2018Status: DisposedITAT Mumbai03 September 2019AY 2012-132 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that computer peripherals like printers are part of the computer system and are entitled to depreciation at the rate of 60%. The orders of the lower authorities were set aside.

What were the facts?

The assessee claimed depreciation on printers at 60%, but the authorities allowed it at 15%. This resulted in significant disallowances for the assessment years 2012-13 and 2013-14.

What were the issues?

The primary issue was the correct rate of depreciation applicable to printers as computer peripherals.

Which sections of the Income-tax Act were involved?

Section 32

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” Bench, Mumbai

Before: Shri Shamim Yahya (AM)

For Respondent: Shri Chaitanya Anjaria
Hearing: 4.7.2019Pronounced: 3.9.2019

Heard together (2 matters)

I.T.A. No. 4552/Mum/2018
I.T.A. No. 4553/Mum/2018

Read from the judgment's own cause title. This page is filed under one of them.

These are appeals by the assessee directed against common order of learned CIT(A) dated 2.5.2018 and pertain to A.Ys. 2012-13 & 2013-14 where rate of depreciation on printers has been allowed at the rate of 15% as against 60% claimed by the assessee.

2.

I have heard learned Departmental Representative and perused the records. None appeared on behalf of the assessee despite notice.

3.

In this case the assessee has been allowed depreciation on printers at the rate of 15% as against the rate of 60% claimed by the assessee. This has resulted into following disallowances :-

A.Y. 2012-13 Rs. 36,33,154/- A.Y. 2013-14 Rs. 25,68,959/-

4.

Upon carefully consideration, I find that the issue is covered in favour of the assessee by a catena of decisions from Hon'ble High Courts. In these decisions, it was held that computer peripherals like printers are part of the computer system and hence entitled for depreciation at the rate of 60%. In this regard I may refer to the following decisions :-  Hon'ble Madras High Court in the case of CIT Vs. Cactus Imaging India Pvt. Ltd. (TC No. 921 & 922 of 2008 order dated 16.4.2018)  Hon'ble Delhi High Court in the case of CIT Vs. Bses Yamuna Power Ltd. (ITA No. 1267 of 2010 order dated 31.8.2010)

5.

Respectfully following the above precedent, I set aside the orders of the authorities below and decide the issue in favour of the assessee.

6.

In the result, appeals by the assessee stand allowed. Order has been pronounced in the Court on 3.9.2019.

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