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2020 (3) TMI 802 - AT - Income TaxDisallowance of depreciation claimed on Automated Teller Machines (ATM) - @ 15% OR 60% - contention of the assessee that ATM machine falling within the meaning of ‘’computer’’ qualifying for depreciation @60% - HELD THAT:- The Karnataka Sales Tax Act and the Income-tax Act, 1961 are not similar, i.e., pari materia legislations. In the matter of interpretation of an entry under the sales tax laws ‘Trade Test’ or ‘Common Parlance Test’ is applied while considering whether a particular item/goods fall in an entry or not, whereas under the Income-tax Act, 1961, particularly when considering whether an item is to be considered as ‘plant and machinery’ and/or ‘building’ or any of the items specified in the Appendix to the Incometax Rules, 1962, functional test is the decisive test, as ruled by the Hon’ble Supreme Court of India in numerous cases, one such being CIT vs. Anand Theatres [2000 (5) TMI 4 - SUPREME COURT] In other words, the test would be: Does an ATM fulfil the functions of a Computer in the business activity of an assessee? Is it a tool of his trade with which it carries on his business? If the answer is in affirmative, it would be a computer and moreover the issue was already decided in favour of the assessee in assessee's own case by the Co-ordinate Bench of the Tribunal [2019 (6) TMI 1454 - ITAT CHENNAI] and hence, we do not find any reason to depart from the findings of the Co-ordinate Bench of the Tribunal. Accordingly, we direct the Assessing Officer to allow depreciation @60% as claimed by the assessee. Thus, the appeal filed by the assessee for assessment year 2015-2016 stands allowed.
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