UPS an integral part of computer & depreciation @ 60% should be given on same: ITAT

The Income Tax Appellate Tribunal (“ITAT”) held that UPS is an integral part of the computer and the depreciation upon same should be one given upon the computers @ 60%.

As per Tribunal, it is settled proposition of law that in the term “Computer” includes paraphernalia and accessories are included reliance was placed on the judgment of Hon’ble Delhi high Court in DCIT vs. Hotel Excelsior Ltd. 141 TTJ 248 (Delhi) and CIT vs. Oriented Ceremics and Industries Ltd. 200 Taxman 64 (Delhi).

In this case Assessee had made a claim of depreciation of Rs 60% on UPS but the AO restricted the claim of depreciation @ 15% only on the UPS and disallowed the excess 45% namely, Rs.50,320/-.

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