Pentamedia Graphics Ltd. v. Dy. CIT (2020) 80 ITR 555 / 18 5 ITD 145/ 205 TTJ 892 (Chennai) (Trib)

S.32: Depreciation — Animation software ,stored in computer for use in films -Entitle to depreciation at 25% and not 60% .

The Tribunal held that the digital content developed by the assessee was a copyrighted material developed by it which was stored in a computer. This digital content was manipulated by the assessee to be used in different films but it could not be categorised as computer programme but retained the character of copyrighted material and was an intangible asset which was eligible for depreciation at 25 per cent.