ACIT, NEW DELHI vs. M/S. CONNAUGHT PLAZA RESTAURANTS PVT. LTD., NEW DELHI

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ITA 1392/DEL/2014Status: DisposedITAT Delhi10 March 2016AY 2006-073 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal followed its own previous decisions for the assessee's cases for other assessment years. It held that POS machines qualify for 60% depreciation, thus approving the CIT(A)'s action.

What were the facts?

The Revenue appealed the CIT(A)'s decision to allow 60% depreciation on Point of Sales (POS) systems, considering them as computers. The assessment year in question is 2006-07.

What were the issues?

The primary issue was whether POS systems should be classified as computers to be eligible for higher depreciation at 60%.

Which sections of the Income-tax Act were involved?

None explicitly mentioned in relation to the core issue, but depreciation is governed by Section 32.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES : B : NEW DELHI

Before: SHRI R.S. SYAL, AM & SHRI A.T. VARKEY, JM

For Appellant: Shri Rohit Garg, CA, Ms Susan D. George, Sr. DR
Hearing: 10.03.2016Pronounced: 10.03.2016

This appeal by the Revenue arises out of the order passed by the CIT(A) on 6.12.2013 in relation to the assessment year 2006-07.

2.

The only issue raised is against allowing of depreciation at 60% on Point of Sales systems (POS) by holding the same to be computers.

3.

We have heard the parties and perused the relevant material on record. The ld. AR has brought to our notice a copy of the order passed by the Tribunal in the assessee’s own case for the A.Y. 2003-04 in which it has been held that 60% depreciation is exigible on POS machine. Similar view has been taken by the Tribunal in the assessee’s own cases for the A.Ys. 2004-05, 2007-08, 2008-09 and 2009-10. Copies of such orders are available on record. The only intervening year, namely, A.Y. 2006-07 involving similar issue is before us.

Respectfully following the precedent, we approve the action of the ld. CIT(A) in allowing higher depreciation on POS machine of the assessee.

4.

In the result, the appeal of the Revenue stands dismissed.

Order Pronounced in the open Court on 10.03.2016.

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