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TMI Blog2018 (2) TMI 592X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of Depreciation amounting to Rs. 91,87,713/- on the alleged plea that the Film Projector is to be depreciated @ 15% instead of 60%, without appreciating the facts and circumstances of the case. 3. Brief facts of the case are as under: The assessee is engaged in the business of providing film projection services to the Theatres and receives service charges for the same. During the year assessee has shown such service charges of Rs. 98.64 lakh and interest income on FD of Rs. 18.68 lakhs. Because of claim of huge depreciation, loss has been shown. According to the Assessing Officer, the assessee has claimed depreciation on film projector claiming it as "computer" which is not correct. The Assessing Officer opined that the contention t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 088/- for more than 180 days and Rs. 2,54,100/- for less than 180 days). The Assessing Officer has disallowed excess claim of depreciation of Rs, 91,87,713/-. 4. Against the above order, the assessee appealed before the ld. Commissioner of Income Tax (Appeals). 5. Before the ld. Commissioner of Income Tax (Appeals), the assessee inter alia submitted that the business of the assessee is to provide film projection services to the theatres. This digital projector is run with server which is part and parcel of the "computer". The function of the server is to process the information given to it, and the function of the digital projector to display the required information. Thus, it is just like a normal computer. However, the ld. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... othing but the output devices of "computer" is misplaced because digital projector cannot be presumed as "computer" as this is the only output of the devise. The concept of "computer" cannot be expended on the basis of logic disrespecting the concept of machinery. Even aeroplane is run or plied on with the help of computerised devices. That does not mean that aeroplane can be treated as "computer". Therefore, because of the fact of the case, various case laws relied upon by the Ld. A/R are not applicable. In the ase of DCIT Mumbai Vs. Data Craft India Ltd. (2010) 40 SOT 295 (MUM) (SB) ITAT), the issue was related to router and switches which were part and parcel of le "computer" hardware and other functions were found to be integrated one. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chinery, hence it is entitled for depreciation at the rate of 15%, and not at the rate of 60%. Therefore, the excess claim of depreciation of Rs. 91,87,713/-disallowed by the AO is sustained. 6. Against the above order, the assessee is in appeal before the ITAT. 7. I have heard both the counsel and perused the records. The ld. Counsel of the assessee reiterated the submissions made before the authorities below. He insisted that the project is a computer and it should be granted deprecation is applicable to computers. In this regard, the ld. Counsel of the assessee placed reliance upon the decision of ITAT Mumbai Special Bench in the case of DCIT vs. Datacraft India Ltd. [2011] 9 ITR(T) 712 (Mum) (SB) and the ITAT Bangalaore Bench decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such as Airtel, BSNL, Reliance. It, therefore, follows that any machine or equipment cannot be described as computer, if its principal output or function is the result of some sort of 'computer functions' in conjunction with some non-computer functions. In order to be called as computer, it is sine qua non that the principal output/object/function of such machine should be achievable only through 'computer functions'. 10. From the above exposition it is evident that just because some sort of computer functions are necessarily involved, mechanical system cannot be said to be computer unless its principal function cannot be done without the aid of computer function. In other words, any machine or equipment cannot be described as computer if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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