9911796707
TMI Blog2004 (2) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Rules should be worked out by taking into consideration the year-wise details of such travelling expenses rather than trip-wise expenses? 2. Whether, on the facts and in the circumstances of the case and in law, the Tribunal is right in holding that the assessee is entitled to investment allowance on computers?" The assessee is a company manufacturing road making machinery, quarry equipment, material handling equipment and turnkey plants. During the course of the assessment proceeding, the Assessing Officer calculated the disallowance of Rs. 11,550 out of travelling expenses under rule 6D of the Income-tax Rules, considering trip-wise expenses of a person during the accounting year. At the same time, the Assessing Officer disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trips. The actual expenditure incurred on each trip has to be ascertained with reference to the provisions of rule 6D. The unit of expenditure for purposes of rule 6D is the trip but not the individual employee. Accordingly, the expenditure incurred by the asses-see will have to be taken into consideration with reference to each trip of an individual employee but not with reference to the totality of the trips made by an individual employee. A similar view has been taken by the Punjab and Haryana High Court in CIT v. Porritts and Spencer (Asia) Ltd. [2000] 241 ITR 126. We see no reason to take a different view regarding interpretation of the provisions of rule 6D. In view of the above discussion, we hold that all the tours undertaken by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny new machinery or plant installed after the 31st day of March, 1976,- ... (ii) in a small-scale industrial undertaking for the purposes of business of manufacture or production of any article or thing; or (iii) in any other industrial undertaking for the purposes of business of construction, manufacture or production of any article or thing, not being an article or thing specified in the list in the Eleventh Schedule:" The proviso is not relevant as it relates to new machinery or plant installed between 31st day of March, 1987 and 1st day of April, 1988. The assessment year under consideration is 1981-82. Since the industrial undertaking is not entitled to investment allowance if it is manufacturing or producing articles or goods list ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 130 ITR 739 the Bombay High Court considered the meaning of the expression "apparatus" and held that it is a word of much wider import than the word "appliances" and the definition of "plant" in section 43(3) of the Act shows that scientific apparatus is included in the word "plant". The court held that the purposes for which such machines, which can be described as computers, are used are well known and in highly scientifically developed systems, they have their own roles to play and they cannot be equated, therefore, with office appliances which would be of a much simpler nature. They are really substitutes for human labour not in the sense of manual labour but in the sense they perform intellectual functions which would normally be per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratus (only for the purpose of the Eleventh Schedule), computers are not included in the expression "office machinery and apparatus". Computers are more than mere data processing machines. Of course, in CIT v. Comp-Help Services P. Ltd. [2000] 246 ITR 722 (Mad) the assessee was a company engaged in the business of preparing data entries but the court held that the assessee in that case was eligible to investment allowance. The court need not consider the question of disagreement or otherwise with the aforesaid decision nor refer to item 22 in the Eleventh Schedule for the simple reason that the assessee herein is not manufacturing any of the items listed in the Eleventh Schedule. As regards the decision reported in CIT v. R. Shroff Consul ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
