MICROSOFT CORPORATION INDIA PVT. LTD. Vs. ADDL. CIT
INCOME TAX APPELLATE TRIBUNAL
MICROSOFT CORPORATION INDIA PVT. LTD.
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R.S.Syal, Member (A) -
(1.) THIS appeal by the assessee arises out of the final order passed by the Assessing Officer (AO) u/s. 143(3) read with section 144C of the Income -tax Act, 1961 (hereinafter also called 'the Act') on 25.10.2010 in relation to the assessment year 2006 -07.
(2.) GROUND Nos. 1 and 2 are general which do not require any adjudication. Ground No. 3 is against restricting the rate of depreciation on ITG Networking Equipments at 25% as against 60% claimed by the assessee. Briefly stated, the facts of this ground are that the assessee claimed depreciation @ 60% on ITG Networking Equipments under the block of Computers. The AO, following his order for the AY 2002 -03, restricted the rate of depreciation to 25%.
(3.) AFTER considering the rival submissions and perusing the relevant material on record, it is noticed from the assessment order itself that the AO restricted the claim of depreciation on ITG Networking Equipments by relying on the view taken by him for the AY 2002 -03. The said assessment year came up for consideration before the Tribunal in ITA No. 4173/Del/2010. Vide its order dated 19.11.2010, a copy of which is available on record, the Tribunal accepted the applicability of higher rate of depreciation by relying on the Special Bench order passed in the case of DCIT v. Data Craft India Ltd. : (2010) 133 TTJ (Mumbai)(SB) 377. In the absence of any distinguishing feature having been brought to our notice by the ld. DR about the facts of the instant year and the preceding year, we, respectfully following the precedent, allow this ground of appeal.;
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