TMI Blog1994 (10) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... as imported from the USA. The payment of the duty and installation costs of the machinery was financed by the Gujarat State Finance Corporation, Ahmedabad, Gujarat. 3. The assessee company is engaged in the business of data processing, system designing and software development and supply. While completing the assessments under s. 143(3) the learned Assessing Officer (AO) allowed to the assessee company following deductions : Asst. yr. 1985-86 1. Investment allowance of ₹ 4,90,000 on computers 2. Additional depreciation of ₹ 1,46,714 on computers 3. Extra shift Allowance of ₹ 2,93,429 on computers Asst. yr. 1986-87 : 1. Additional depreciation ₹ 74,560 on computers. 2. Extra shirt allowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of printout of data is not a commercial or marketable commodity. It has no use to anybody else except the person for whom the data are processed. The assessee is not really selling any goods. Its business is providing services. In support of his contention the learned CIT also relied upon the definition of the word article given in the T. P. Mukherjees The Law Lexicon Second Edition at page 163 which reads as under : Article : The Shorter Oxford English Dictionary (Ed. 1964), Vol. I, Page 102 says that article means, inter alia, a piece of goods or property . Websters New World Dictionary defines an article as a commodity and commodity as any useful thing or any article of commerce . (See Ed. 1962, pp. 83 and 295). Putti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shah, the learned counsel for the assessee, submitted that the CIT is not justified in setting aside the assessments framed by the ITO by the impugned orders. He submitted that the CIT failed to appreciate that investment allowance is the successor of the development rebate and the CBDT has also pointed out that its Circulars on development rebate very much apply to the investment allowance e.g. a circular on development rebate regarding providing a reserve in the year of losses. According to the learned counsel for the assessee, the CIT further erred in pointing out that the decision of the Bombay High Court in the case of CIT vs. IBM World Trade Corpn. (supra) and other judgments did not apply to the facts of the case when in fact each on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he rival submissions. As stated above, the assessee is engaged in the business of data processing, system designing and Software development and supply. In fact, the business of the assessee can be broadly classified in the two areas, one manufacture of general purpose of multi-user software and the other is production of a system as per the specifications, requirements and necessities of a particular customer. The business as mentioned above is carried out by a team of technical persons employed by the company. The system used by the company will consist of a very complicated set of plant and machinery and equipment. Under the circumstances, we do not agree with the observations of the CIT that the assessee does not produce any article or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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