|The Tax Publishers2021 TaxPub(DT) 0452 (Ahd-Trib)
INCOME TAX ACT, 1961
Where asset in question was a multi-functional printer and its feature to make photostat of a paper was an added activity, the said asset would be treated as an integral part of the computer system which helps printing from the computer connected with it and accordingly, the assessee would be entitled for depreciation at the rate of 60% on the same.
Depreciation - Higher rate - Multi-functional printer -
Assessee claimed depreciation @60% on Xerox Machine WV-5745. AO was of the view that the said asset being photo-stat machine was liable for depreciation @15% rather than @60%. Further, CIT(A) also confirmed the depreciation allowance @15% as against 60% claimed by the assessee. Assessee submitted that it was not a Xerox machine simplicitor; rather it was a multi-functional printer, which could do photo-state work as well as printing if attached with printer. Therefore, the CIT (A) erred in taking cognizance of the nature of the said machinery. Held: CIT(A) failed to comprehend true nature of the asset, i.e., Xerox Machine WV-5745. It had been treated as photo-state machine without going through literature of the machine supplied by the manufacturer. According to the manual, it was a multi-functional printer. Its feature to make photo-stat of a paper was an added activity. Further, the admissibility of depreciation at the rate of 60% was not disputed by CIT(A) as the CIT(A) granted the said rate of depreciation on all other assets, which were treated as peripheral of the computer. Therefore, the said asset could not be excluded for the reasons assigned by the CIT(A). It would be treated as an integral part of the computer system which helps printing from the computer connected with it. Hence, the assessee was entitled for depreciation at the rate of 60% on Xerox Machine WV-5745.
FAVOUR : In assessee's favour.
A.Y. : 2013-14
IN THE ITAT, AHMEDABAD BENCH
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