TMI Blog2010 (2) TMI 912X X X X Extracts X X X X X X X X Extracts X X X X ..... help of web-cam or video camera and audio input with the help of microphone. The system thereafter processed the data and transfer through analogue or digital telephone network or lan and digital gives the output data by way of audio video output. It is a technical device whose function are similar to the computer because basically computer also respond to a specific set of instructions in a well defined manner – On the basis of Samiran Majumdar (2005 (8) TMI 293 - ITAT CALCUTTA-B) wherein printer and scanner was considered integral part of the computer and allowed depreciation at the rate of 60 per cent. Thus issue set aside to the file of the AO for readjudication as the note exhibiting the functioning of a video conferencing equipment place before us was not placed before the AO - in favour of assessee for statistical purposes. - ITA Nos. 3638 and 3639 (Del) of 2008 - - - Dated:- 25-2-2010 - Rajpal Yadav, R.C. Sharma, JJ. V.P. Bansal for the Appellant Manish Gupta for the Respondent ORDER Rajpal Yadav J.M.: The present two appeals are directed at the instance of the assessee against the orders of learned CIT (Appeals) dated 8-9-2008 and 5-9-2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses. The only grievance of the Assessing Officer is that corresponding income has not resulted to the assessee from the incurrence of such expenses, therefore, 50 per cent are not allowable. On the strength of Hon'ble Supreme Court's decision in the case of CIT v. Indian Bank Ltd. [1965] 56 ITR 77. He submitted that if expenditure is incurred wholly and exclusively for the purpose of the business then its allowance and disallowance would not be dependent upon the resultant income. It is not necessary that by spending money income should be generated. If that be so, then no concern would have suffered any loss. For buttressing his proposition, he relied upon the judgment of the Hon'ble Delhi High Court in the case of CIT v. Delhi Cloth and General Mills Co. Ltd. [1978] 115 ITR 659. He also contended that Assessing Officer has not assigned any reason why 50 per cent is to be disallowed and 50 per cent is to be allowed to the assessee. Learned DR on the other hand relied upon the orders of the Assessing Officer. 6. We have duly considered the rival contentions and gone through the record carefully. Section 37 of the Income-tax Act, 1961 provides for deduction of all expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be claimed on the entire video conferencing equipments which include TV sets, web-camera etc. He further observed that if the claim of the assessee-company is accepted then all the big input and output devices processing units, storage unit like MRI scanning machines, coordinate measuring machine used in the industries for welding etc. will be entitled to 60 per cent depreciation. Assessing Officer in this way disallowed the claim of the assessee and granted the depreciation at the rate of 25 per cent. 8. Appeal to the learned CIT (Appeals) did not bring any relief to the assessee. 9. The learned counsel for the assessee at the time of hearing placed on record a note exhibiting the functioning of video conferencing machine. He submitted that the computer is not defined in the Income-tax Act, 1961. The definition available in section 2(1)(t) of the Information Technology Act, 2000 is relevant for understanding the meaning of computer. He placed this definition in his note. The note as well as the definition reads as under: "A Videoconference (or videoteleconference) is a set of interactive telecommunication technologies which allow two or more locations to interact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o speak with others to learn. (iii) Business Impact - To enhance customer and supplier base, knowledge sharing and technical updation. (iv) Impact on Law - Videoconferencing has allowed testimony to be used for individuals who are not able to attend the physical legal settings. In India, in most recent case KASAB was presented before the court through Video conference system. (v) Media relations - Video press conference at national and international level. The video conference system has been installed for our official use in all our branches and factories for the purpose of communication. We are manufacturing and trading highly technical Electrical items and Bath fittings as per national and international quality standards. These items are mostly used by the electrical consultants and Architects at very sensitive areas. Our products are regularly having improving and changing nature. The new features have to be communicated to our market staff and customers to exchange the technical knowledge. Over the system, installed in our factories and offices, we share technical drawings, technical views and designs with our technicians, Engineers, consultants, architects and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excluding their values from grant of depreciation at the rate of 60 per cent. The ITAT in the case of Climate Systems India Ltd. (supra) has set aside the issue to the Assessing Officer for verifying the status of each individual items and how they are inter-connected or dependable upon computer for their functioning. 11. We have duly considered the rival contentions and gone through the record carefully. The note exhibiting the functioning of a video conferencing equipment place before us was not placed before the Assessing Officer. According to this material, a video conference system is a computer device, that accept information in the form of digital data by way of video input i.e. with the help of web-cam or video camera and audio input with the help of microphone. The system thereafter processed the data and transfer through analogue or digital telephone network or lan and digital gives the output data by way of audio video output. It is a technical device whose function are similar to the computer because basically computer also respond to a specific set of instructions in a well defined manner. It used to execute a pre-recorded list of instructions. The ITAT in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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