2005 (8) TMI 293 - ITAT CALCUTTA-B

Disallowance made on account of depreciation - colour Xerox machine - Whether printer and scanner are the part of the computer system or treat as plant and machinery - HELD THAT:- We find that Inspector after verifying the function of the printer and scanner reported that it runs with the help of computer and the said machine is external device attached to the computer with the help of cables. The Assessing Officer on the basis of the said report of the Inspector was of the view that the machine in question is not a computer vide his remand report dated 23-12-2004 appearing at page 11 of the assessee's paper book. However, from the fair reading of the Income-tax Inspector's report, we find that the printer and scanner cannot be used without the computer, i.e., they are part of the computer system.

Thus. we are of the view that the printer and scanner are integral part of the computer system, therefore, they are to be treated as computer for the purposes of allowing higher rate of depreciation, i.e., 60 per cent and accordingly, we decline to interfere in the order passed by the Ld. CIT(A) on this account. The grounds taken by the revenue are, therefore, rejected.

In the result, the appeal stands dismissed.