Case : Is it lawfully correct to claim 60 % depreciation on EPABX and mobile phones used for business by the assessee on the ground that the nature of mobiles are similar to that of computers ?

Ruling : Following this issue, the High Court held that the rate of depreciation of 60% is available to computers and there is absolutely no ground to treat the communication equipments as computers, owing to the ground that though mobile phones can nowadays perform numerous tasks through android,web applications and e-browsers, there is nowhere intended in Income Tax Act to allow higher depreciation of 60% on Electronic Private Automatic Branch Exchange and mobile phones.

[Federal Bank Ltd. vs ACIT]

Year of Pronouncement : 2011