TMI Blog2007 (4) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... fined under this Act and according to it, a computer network means, the inter-connection of one or more computers through the use of satellite, microwave terrestrial line or other communication media. Undisputedly, a router is used to provide a connectivity between the computers and also to process the data from one computer to another. A router of its own does not perform logical, arithmetical or memory functions by manipulations of electronic, magnetic or optic impulses. Without a router, a computer can independently work and perform all functions. Before us, the learned counsel for the assessee did not filed complete text of computer network. He has tried to draw an inference from the definition of computer given in this Act that the router is a part of computer system and not a computer network. Since the depreciation is to be allowed only on the computer and not the computer system and in any case a router cannot be called to be the part of the computer, we are not convinced with the arguments raised by the assessee. Moreover, the Assessing Officer has made a detailed analysis and distinction between the computer and the routers. We, therefore, of the view that lower aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing calculators which are not programmable and capable of being used in conjunction with external files or more of which contain computer programmes, electronic instructions, input data and output data that performs functions including but not limited to logic, arithmetic, data storage and retrieval, communications and control. Routers : Routers is a telecommunication device. A routers is an electronic circuitry facilitating switching between different computers in a net working environment. Thus, if any information is to be sent or retrieved through several network of computers a routers is the device which links or connect such computers for exchange of relevant data. In other words, a routers is an electronic device is switched between computers for connectivity. It is a main link which decides and facilities connectivity between computers in a network which could be a lan or wan. Routers are switches, doing the job of multiplexing. These are basically complex electronic circuits managing the links between various computers. It is not necessarily a stand alone system as commonly understood vis-a-vis a computer. In other words, it has to be dependent for its functioning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is as under : Sl No. Purchase period Amount Deprn. Amount of Deprn. allowable 1. Routers purchases prior to 1-4-2000 840,000 25% 210,000 2. Routers purchased during financial year 2000-01 and used for more than 180 days 209,775 25% 52,444 3. Routers purchased during financial year 2000-01 and used for less than 180 days 785,868 12.5% 98,234 Total Depreciation allowable on Routers. 360,678 Thus, the excess of depreciation claimed of Rs. 4,85,070 (the difference between Rs. 8,45,748 being the depreciation claimed on the routers and Rs. 3,60,678 being the depreciation allowable on such assets) is disallowed and added back to the total income of the assessee." 4. The assessee preferred an appeal before the CIT(A) and has invited his attention to the definition of the computer as provided by the Cyber Law and Information Technology Act, 2000. The CIT(A) re-examined the issue, but, was not convinced with the explanation of the assessee and has held that routers are totally different than the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Computer can independently work and process the datas. The router can only be used to connect more computers and transmit the datas from one computer to other. It can only be termed to be the computer network. 7. Having heard the rival submissions and from careful perusal of the Orders of the lower authorities, we find that Assessing Officer has examined the difference between the computer and routers and according to him, router is a tele-communication device. It is an electronic circuitry, facilitating switching between different computers in a net working environment. Thus, if any information is to be sent or retrieved through several network of computers, a router is the device which links or connects such computers for exchange of relevant data. In other words, a router is an electronic device switched between computers for connectivity. It is a main link which facilitates connectivity between computers in a network which could be lan or wan. We have also examined the definition of computer given in Oxford Dictionary and other dictionaries. Undisputedly, the computer has not been defined under the Income-tax Act. But, the computer system had been explained in Explanat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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