Depreciation on iPad to be charged at lower rates because it is not a computer

In M/S Kohinoor India Pvt. Ltd. V. Assistant Commissioner Income Tax [I.T.A. Nos. 234 & 316/Asr/2017 decided on August 16, 2021] M/S Kohinoor India Pvt. Ltd (“the Appellant”) filed an appeal in the Appellate tribunal against the order dated March 14, 2017 passed by the Commissioner of Income tax (Appeals) (“the Respondent”) in respect of assessment years 2012-13 and 2013-14, posing a question as to whether iPad falls under the ambit of computer or mobile phone. The question is relevant in determining the rate of depreciation, if it falls under the definition of computer because higher rate of depreciation will be charged whereas if it falls under the definition of mobile phones relatively lower rate of depreciation will be charged.

The Tribunal however, opined that an iPad cannot be treated as a computer as it is a communication device having an IMEA number, rather than a computing device. Listing out the main features of iPad like e-mail, WhatsApp, calls, etc. The Tribunal observed that though the iPad may have some features of a computer, the mere assumption of the assessee is not enough to claim it as a computer and hence, charge depreciation at a higher rate. Hence, held that depreciation should be applicable at a lower rate.

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