Whether i-Pad is a computer for depreciation purposes? An issue before ITAT Amritsar 

M/s Kohinoor Indian (129 taxman. com 396 (Amritsar – Trib.)[16-08-2021])

Short overview of the case:

Facts:

1. The issue before the ITAT was whether the iPad falls in the definition of computer or mobile phone. 

2. If an iPad falls in the definition of computer then a high rate of depreciation ie 40% is allowable however if it falls within the definition of mobile phone then the lower rate of depreciation is allowable ie 15%.

The ITAT held as below:

1. Depreciation at lower rate is applicable on iPad as it is not a computer. Predominate purpose of iPad is communication and not use as a computing device as its main features are email, whatsapp, Facetime calls, calls, music, films etc. Though iPad may discharge some functions of computers, it is not a substitution of computer/laptop, which have various utilities/functions, though some functions may be common with iPad. 

2. Another reason for considering the iPad to be a communication device is that it has an IMEA number.

3. Apple store does not sell Ipad as a computer device rather it is selling it as communicating/entertainment device.

4. The onus is on the assessee to prove that the assessee is entitled to higher depreciation and merely based on assumptions, iPad cannot be considered to be a computer. 

5. Thus the assessee cannot be entitled to a higher rate of depreciation.