Depreciation at a higher rate of 60% not allowed on EPABX and mobile phones- Kerala High Court
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Case Details: |
Federal Bank Ltd. vs. ACIT |
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Appeal No.: |
I.T.A. No. 524 of 2009 |
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Order pronounced by: |
Kerala High Court |
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Date of order: |
26-11-2010 |
Source: Kerala High Court Judgements
Brief Facts:
The assessee claimed a higher rate of depreciation of 60% on EPABX and mobile phones treating them as ‘Computer’. The claim of the assessee was disallowed by the Learned A.O. and appellate authorities subsequently. The assessee took up the matter before the Hon’ble High Court.
Ruling:
The Hon’ble High Court dismissed the question raised by the assessee and upheld the order passed by the Tribunal. The Hon’ble High Court ruled that the rate of depreciation of 60% is available to computers and we do not find any ground to treat the communication equipment like EPABX and mobile phones as computers. Therefore, the Tribunal was right in holding that these equipments are not computers entitling the assessee for depreciation at the rate of 60%.
