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2016 (12) TMI 42 - AT - Income TaxRevision u/s 263 - Claim of depreciation on the amount of computers purchased - whether the business of the assessee was set-up during the year under consideration, so as to enable it to claim depreciation? - Held that:- The assessee had supplied these computers to its Retail Distributors and also got installed therein requisite software and also carried out trial runs. There may be some debate or discussion on the date of actual user by these Retail Distributors but as far as assessee is concerned, these can be deemed to be put to use the moment these computers and their software were provided by the assessee to its Retail Distributors for online sale of lottery tickets. The assessee had set-up its business during the year under consideration and had also put to use the computers on which depreciation has been claimed on proportionate basis for using the same for less than 180 days and therefore, the claim of the assessee was valid in the eyes of law and facts of this case and therefore, same was rightly allowed by the Ld. AO after examining all the facts in this regard and the same was wrongly denied by the Ld. CIT and therefore his action is reversed. The claim of depreciation is directed to be allowed. Since, we have allowed the claim on merits, the other issue with regard to jurisdictional validity of impugned order passed u/s 263 becomes academic and therefore, we are not going into the same at this stage.
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