TMI Blog1995 (6) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... rief, are as under :--- The assessee has claimed investment allowance to the tune of Rs. 42,555. The computer was installed during the year under consideration and was operated by M/s. Total Computer, Bombay. For this purpose, the assessee has rented a room but the tenant without paying any rent left behind the computer and accessories. As a consequence to this, the computer was taken by the assessee in its possession and the price of the computer was got confirmed from the market and the assessee brought it in assessee's books by debiting the computer account and crediting the rent account. In other words, the assessee has treated this as purchase during the year under consideration. The assessee has submitted the bill wise clarification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Hon'ble Supreme Court in the case of CIT v. T.N. Aravinda Reddy [1979] 120 ITR 46 and submitted that the order of the learned CIT(A) is liable to be set aside. 5. As against this, the learned Departmental Representative supported the order of the revenue authorities and submitted that by no dint of imagination, it could be said that the assessee has purchased the computer and as such, the assessee is not entitled to the claim of investment allowance and depreciation. 6. We have heard the rival submissions and have gone through the orders of the revenue authorities and the decision of the Hon'ble Supreme Court. In the case of T.N. Aravinda Reddy, the Hon'ble Supreme Court affirmed the decision of the Hon'ble Andhra Pradesh High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he computer nor tried to pay any amount towards expenses incurred by the operator. In otherwords, by action/inaction the other party relinquished the property, i.e., computer to the assessee and agrees that he is at liberty to adjust the value of the computer towards expenses expended by the computer operator. We find sufficient support from the decision of his lordship of the Supreme Court to come to the conclusion that the assessee has purchased the good. The word " purchase " as held by his lordships in the decision of the Supreme Court, means " buy for a price or equivalent of price by payment in kind or adjustment towards a debt or for other monetary consideration ". It can reasonably be presumed that even an adjustment towards a debt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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