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TMI Blog2006 (8) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case the Tribunal is right in law in holding that the investment allowance and additional depreciation is allowable on computers? (2) Whether on the facts and in the circumstances of the case the Tribunal is justified in law in holding that data processing and print out would certainly be a thing produced by the assessee even if not a thing manufactured by the assessee and thereby the assessee company is entitled to deduction u/s. 32A? (3) Whether on the facts and in the circumstances of the case the Tribunal is right in law in holding that the computer machinery installed by the assessee company are plant and machinery as a natural corollary and thereby the additional depreciation is entitled to the assessee?" 2. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance for triple shift to the data processing equipment was also not admissible in view of the provisions of depreciation Schedule Part III-C(5). 4. On an appeal, the Tribunal held that in view of the judgment of the Gujarat High Court in the case of CIT v. Ajay Printing Pvt. Ltd. [1965] 58 I.T.R. 811], the data processing and print out would certainly be a thing produced by the assessee. It was observed that the assessee was entitled to the deduction under Section-32A of the Act. It also observed that the computer machinery installed by the assessee are plant and machinery as a natural corollary, the assessee would be entitled to the additional depreciation and accordingly, held that the C.I.T. was not justified in setting aside th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sum equal to one-half of the amount admissible under clause (ii) (exclusive of extra allowance for double or multiple shift working of the machinery or plant and the extra allowance in respect of machinery or plant installed in any premises used as a hotel) in respect of the previous year in which such machinery or plant is installed or, if the machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year : Provided that no deduction shall be allowed under this clause in respect of - (a) any machinery or plant installed in any office premises or any residential accommodation ;. . . . ." 9. It is submitted that even if the computers and data processing machines are taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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