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Depreciation

vishnupriya (CA Final) (1418 Points)

19 April 2010

Computer printer is also a pheripheral of Computer then why it is depreciated at 15%??

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CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 19 April 2010

No Under Income Ta Act,

Its To Be Taxable at the Rate of 60% Only.as its Computer Peripherials.......

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CA Jimmit D Mehta (Employed) (494 Points)
Replied 19 April 2010

Because printer is physically separate from computer so it's depreciation rate at 15% as per income tax rules.......

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 19 April 2010

Yes it is considered as an integral part of computer and a printer cannot work without a computer and hence depreciated @ 60%

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 19 April 2010

SUMMARY OF CASE LAW

Printers, scanners and other peripherals are part and parcel of computer and depreciation against such asset are allowable @ 60 per cent.

CASE LAW DETAILS
Decided by: ITAT, DELHI BENCH `B’: NEW DELHI
In The case of: ACIT v Container Corporation of India Ltd.
Appeal No. : ITA Nos. 2851 & 3680/Del/2007
Decided on: February 27, 2009

RELEVANT PARAGRAPHS:

40. The accessories and peripherals of computers provide input processing, storage and various output devices. The output devices such as printer, scanner etc. are computer peripherals and form essential parts of PC. These output devices cannot work in isolation and also working on computer system without an output device such as printer would be futile. In view of the above, the claim of depreciation at 60% on printer, scanner and other computer peripherals is completely justified. The claim of depreciation of 60% further gets justified in view of the fact that even computer software which is installed on computer system supports the computer hardware and is eligible for depreciation at 60%.

41. As held by the Calcutta High Court decision in Jokai India Ltd. 251 ITR 39. in view of decision of Kolkata, ITAT in the case of ITO Vs. Sa Majumdar-2804TR~ 74, we hold that printers, scanners and other peripherals were part and parcel of computer and depreciation against such asset are allowable @ 60%. This ground is to be decided in favour of the assessee and against the revenue in view of the decision of the Kolkata Bench `B’ of the Tribunal in the case of ITO vs. Samiran Majumdar (2006) 98 ITD 119 (Kol) wherein the Tribunal allowed the claim by observing as under :

“Therefore, the printer and scanner were integral part of the computer system and were to be treated as computer for the purposes of allowing higher rate of depreciation, i.e., 60 per cent and accordingly, no interference was required in the order passed by the Commissioner (Appeals) on that account.” Therefore, the effective ground remains with regard to deduction under section 80IA in respect of inland ports.

42. We accordingly uphold the order of the CIT(A) in allowing depreciation @ 60% on computer peripherals and accessories by treating them as computers.

regards,

ratan

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