· The assessee company was engaged in the business of consultancy.
· The AO as well as the CIT(A) allowed lower rate of depreciation to the assessee on CCTV cameras @ 15%, considering the same to be a part and parcel of office equipment.
· It was contended by the assessee that the CCTC cameras can only run when they are connected with computer, and as the computer was an integral part of CCTV, depreciation on the same should be @ 60%, as has been envisaged for computers and peripherals.
· The Court, thus, concluded that as the footage captured by the CCTV could have been seen only with the device in the shape of computer, computer was an integral part of CCTV camera and as such, was eligible for depreciation @ 60%, and not 15%.
For further reading, refer the attachment.
Further Reading