DCIT, Hyderabad v. S.P. Software Pvt.Ltd.,, Hyderabad

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B' HYDERABAD BEFORE SHRI G.C.GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1278/HYD/10 : ASSTT . YEAR 2007-08 DY. COMMISSIONER OF INCOME- TAX CIRCLE-3(2) HYDERABAD V/S. M/S. S.P. SOFTWARE PVT. LTD. HYDERABAD ( PAN AACCS 8407 N ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AMLAN TRIPATHY RESPONDENT BY : SHRI MOHD. AFZAL O R D E R PER G.C.GUPTA VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 20 07-08 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME -TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- '1. THE COMMISSIONER OF INCOME-TAX(APPEALS) ERRED B OTH IN LAW AND FACTS. 2. THE CIT(A) OUGHT TO HAVE UPHELD THE DISALLOWANCE MADE WITH REGARD TO THE EXCESS CLAIM OF THE DEPRECIATION ON T HE SOFTWARE DEVELOPED-IN-HOUSE. 3. THE CIT(A) OUGHT HAVE APPRECIATED THE DISALLOWAN CE MADE ON THE DEPRECIATION IN RESPECT OF PURCHASES MADE FROM M/S. OASIS INFOTECH LTD. ' 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELI ED ON THE ORDER OF THE ASSESSING OFFICER. THE LEARNED COUNSEL FOR THE A SSESSEE SUBMITTED THAT BOTH THE ISSUES INVOLVED IN THE GROUNDS OF APPEAL OF TH E REVENUE VIZ. ITA NO.1278./HYD/1 0 M/S. S.P. SOFTWARE PVT. LTD. HYDERABAD 2 DISALLOWANCE OF DEPRECIATION ON THE SOFTWARE DEVELOPED IN-HOUSE AND DEPRECIATION ON THE PURCHASES MADE FROM M/S. OASIS INFOTECH LTD. ARE COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR S 2001-02 TO 2003-04 IN ITA NOS.534/HYD/2008 AND 151 TO 153/HYD/200 9 DATED 30TH SEPTEMBER 2009 WHEREIN IN IDENTICAL FACTS THE ISSUE W AS DECIDED IN FAVOUR OF THE ASSESSEE. 4. WE HAVE CONSIDERED THEE RIVAL SUBMISSIONS. WE FIND THAT THE BOTH THE ISSUES INVOLVED IN THE GROUNDS OF APPEAL OF THE RE VENUE VIZ. DISALLOWANCE OF DEPRECIATION ON THE SOFTWARE DEVELOPED IN-HOUSE AND DEPRECIATION ON THE PURCHASES MADE FROM M/S. OASIS INFOTECH LTD. ARE COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN ASSESSEE'S OWN CASE FOR THE EARLIER ASSE SSMENT YEARS 2001- 02 TO 2003-04 CITED SUPRA WHEREIN THE TRIBUNAL CONSI DERING IDENTICAL FACTS HAS DIRECTED THE ASSESSING OFFICER TO ALLOW DEPRECIATION ON THE SOFTWARE DEVELOPED IN-HOUSE AND ALSO DEPRECIATION IN RESPECT OF P URCHASES MADE BY THE ASSESSEE FROM M/S. OASIS INFOTECH LTD. WE BEING IN A GREEMENT WITH THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSES SEE'S OWN CASE FOR THE ASSESSMENT YEARS 2001-02 TO 2003-04 DECIDE THE ISSUES INVOLVED IN THE GROUNDS OF APPEAL OF THE REVENUE IN FAVOUR OF THE ASSE SSEE. ACCORDINGLY THE ORDER OF THE CIT(A) IS CONFIRMED AND THE GROUNDS OF AP PEAL OF THE REVENUE ARE REJECTED. 5. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 18.2.2011 SD/- SD/- (CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 18 TH FEBRUARY 2011 ITA NO.1278./HYD/1 0 M/S. S.P. SOFTWARE PVT. LTD. HYDERABAD 3 COPY FORWARDED TO: 1. M/S. S.P. SOFTWARE PVT. LTD. 1-10-45&46/1 CHIKOT I GARDEN BEGUMPET HYDERABAD 2. DY. COMMISSIONER OF INCOME-TAX CIRCLE-3(2). HYDERA BAD 3. COMMISSIONER OF INCOME-TAX(APPEALS)-IV HYDERABAD. 4. COMMISSIONER OF INCOME-TAX-III HYDERABAD 5. THE DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S