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2018 (2) TMI 592

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..... ments of computer function are necessarily involved, the projector cannot be said to be a machine whose principal output/object/function is achieved only through computer function. Hence, that the film projector in this case cannot be said to be computer entitled for higher rate of depreciation of 60% applicable for computation. The decisions referred by the assessee were with respect to printer, scanner and router which are altogether different items. In fact, the exposition from Special bench, Mumbai decision in the case of Datacraft India Ltd. (supra) had defined the term ‘computer’ which has clinched the issue in favour of the Revenue. Accordingly, I do not find any infirmity in the order of the authorities below. Hence, I affirm the sa .....

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..... ojector is installed at cinema theatre at Maxis mall, The computer is altogether different than projector . According to the Assessing Officer, it is also pertinent to note that the assessee himself vide his Audit report (Form 3CD), Part-B, Annexure-A (Particulars of depreciation allowable as the Income-Tax Act) has classified the projector equipment as Plant Machinery and not as computer . That in the Schedule of Financial Accounts accompanying the Financial Statements though there is a separate category of Computer and Software the assessee has shown the same separately as Digital Projector. That therefore, by the assessee's own admission also the projector equipment is not classified under the head Computer. Furthermore, t .....

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..... officer by observing as under: 3.3. I have considered the finding of the AO rival submission of the appellant, and have analysed the character of the film projector. It is very important to clarify that Film projector cannot be understood as computer . The computer is a programmed electronic device designed to accept data for prescribed mathematical and logical Operations at high speed and display the results of such operations. The Ld. AO has rightly observed that character of computer is altogether different than digital computer of film. This projector is a device for projecting a beam of light, Such projector is an optical instrument for projecting an image upon a surface. Further there is a definition of projector which i .....

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..... rt, depreciation was allowed at the rate of 60% on computer accessories and peripherals such as printers, scanners and server as these were integral part of the computer system responsible for completing the required working. Here is not the case like that. This film projector is independent, self content and having different character as it works as machines for projecting a beam of light or projecting images or motion pictures already produced and input. Therefore, such digital projector is a machine and for theatre it is a part and parcel of the plant and machine. 3.4. In the case of Nestle India Ltd. v/s. DCIT 111 TTJ 498 (ITAT Delhi) it has been held that UPS is not an integral part of computer, hence not entitled for higher rate .....

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..... Ltd. [2016] 69 taxmann.com 84 (Bang-Trib). 8. Per Contra, the learned departmental representative relied upon the orders of the authorities below. 9. Upon careful consideration, I note that section 32 of the Act which granted depreciation allowance does not define the word computer . However, the ITAT Special Bench in the case of Datacraft India Ltd. (supra) had the occasion to consider the meaning of word computer . After elaborately considering the Special Bench has expounded as under: 25. Thus in order to determine whether a particular machine can be classified as a computer or not, the predominant function, usage and common parlance understanding, would have to be taken into account. To analyse further, let us take the c .....

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..... some sort of computer functions in conjunction with some non-computer functions. It was held that in order to be called as computer, it is sine qua non that the principal output/object/function of such machine could be achieved only through computer functions . 11. Now we examine the present case on the touch stone of the definition. In the present case, the concerned machine is a film projector. This is an optical instrument for projecting an image upon a surface. It is a device that projects a beam of light on to a screen for viewing a picture already programmed, fed and input. Though some elements of computer function are necessarily involved, the projector cannot be said to be a machine whose principal output/object/function is .....

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