ESENSE LEARNING P.LTD,MUMBAI vs. ACIT 6(2)(2), MUMBAI

O R D E R

PER AMARJIT SINGH, JM:

1. Ground No.1 Depreciation on Computer Projector restricted to 15% (i) The Hon’ble CIT(A) erred in facts and in law, in confirming the depreciation on computer projector at A.Y.2012-13 Rs.31,19,188/- @ 15% as against depreciation @ 60% claimed by your appellant of Rs.1,24,76,754/-. (ii) The Hon’ble CIT(A) failed to appreciate that the projector is an output device of computer system and falls within the definition of computer as per the Information Technology Act, and hence the depreciation claimed by your appellant @ 60% may please be allowed. (iii) Your appellant prays that the disallowance made may please be deleted and the depreciation claimed may please be allowed.

2. Ground No.2 Depreciation on Computer Trolleys restricted to 15% The Hon’ble CIT(A) erred in facts and in law, in (i) confirming the depreciation on computer projector at Rs.8,78,724/- @ 15% as against depreciation @ 60% claimed by assessee of Rs.35,14,901/- @ 60%. (ii) The Hon’ble CIT(A) failed to appreciate that the trolleys were a part of the kit to keep the whole class room training kit in a user friendly & safe manner & hence is as an ancillary equipment and depreciation @ 60% may please by allowed. Your appellant prays that the disallowance made may please be deleted and the depreciation claimed may please be allowed.”

3. The brief facts of the case are that the assessee filed its return of income on 30.09.2012 declaring net loss to the tune of Rs.7,22,19,994/-. The assessment of the assessee was processed u/s 143(1) of the I.T. Act, 1961. Thereafter, the case was selected for scrutiny under CASS. Notices u/s 143(2) & 142(1) of the Act were issued and served upon the assessee. The assessee company is engaged in the business of Publishers, Creators of Educational contents, CD ROM, Set of Digital Classroom in Schools. The digital classroom set-up includes providing hardware technology i.e. computer, projector, speaker, power backup etc. and digital content. The assessee claimed the depreciation @ of 60% of the projectors of the 2 A.Y.2012-13 Computer Trolly etc. The notice was given to the assessee and after reply of the Assessee, the claim of the depreciation was allowed to the extent of 15%. The loss of the assessee was assessed to the tune of Rs.(- )6,02,26,251/-. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who dismissed the appeal of the assessee, therefore, the assessee has filed the present appeal before us.