CNB FINWIZ PRIVATE LIMITED,DELHI vs. ACIT, CIRCLE-6(1), DELHI

ITA 4460/DEL/2025Status: DisposedITAT Delhi16 December 2025AY 2017-18Bench: SHRIMAHAVIR SINGH, HON'BLE VICE PRESIDENT AND SHRISANJAY AWASTHI (Accountant Member)6 pages
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What did the Tribunal hold?

The Tribunal held that the software used for high-frequency trading, integral to the business, qualifies for 60% depreciation. Relying on various judicial precedents, including the Madras High Court and ITAT decisions, the Tribunal found the software to be part of the computer system and not merely an intangible asset.

What were the facts?

The assessee claimed 60% depreciation on software acquired for its high-frequency trading business. The AO restricted this to 25%, considering it an intangible asset. The CIT(A) confirmed the AO's action.

What were the issues?

Whether specialized software integral to the business is eligible for 60% depreciation or falls under intangible assets with 25% depreciation.

Which sections of the Income-tax Act were involved?

Section 250

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Income Tax Appellate Tribunal, DELHI BENCH “B”NEW DELHI

Before: SHRIMAHAVIR SINGH, HON’BLE & SHRISANJAY AWASTHI

For Appellant: Shri Gaurav Gupta, CA and Shri Mohan Chaudhary, Advocate
For Respondent: Shri Sabyasachi Roy, Sr. DR
Hearing: 16.12.2025

PER SANJAY AWASTHI, ACCOUNTANT MEMBER:

1.

This appeal arises from order dated 13.06.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by Ld. Addl./JCIT(A)-

1, Chandigarh. In this case, the main ground of appeal pertains to a claim of depreciation @60% on software obtained by the assessee. This claim was restricted to 25% by the Ld. AO and this action was confirmed

by the Ld. CIT(A) on the basis a finding that the software in question was developed in-house and was developed t

The order continues below.

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