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TMI Blog1995 (8) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of creating graphics by use of laser technology. The assessee returned loss of Rs. 12,29,030 in the return filed on 31-12-1990. Earlier an intimation under section 143(1)(a) of the Income-tax Act dated 20-2-1992 was communicated to the assessee by disallowing the loss claimed by the assessee on the ground that the assessee has not started its business or production activities and, therefore, depreciation was not admissible. 3. In the fresh assessment made under section 143(3) on 25-2-1993 the Assessing Officer elaborated the facts and the conclusion reached in the intimation cited with the result the depreciation of Rs. 9,48,992 claimed by the assessee was disallowed. 4. On appeal, the CIT(Appeals) upheld the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals.). 5. At the time of hearing, the learned counsel for the assessee relied on the decision of the Tribunal, ' A ' Bench of the Allahabad Benches in the case of Raj Kumar Singh Co. v. Dy. CIT [1994] 51 ITD 628 at 632. That was a case where the assessee was earning income from hiring out tippers and vans and on which depreciation was claimed. The claim was disallowed on the ground that they were actually not used, rejecting the assessee's plea that the vehicles were required to be kept ready for use by hirers as and when required by them and these were so kept and as such it was entitled to allowance. The Tribunal held that the law as it stood only required that the vehicles concerned should be kept in readiness for use. There was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mple in nature for which schematic diagrams are already provided by the suppliers, still they choose to send Engineers while integrating for attending to any possible problems in the Hardware which may occur due to Transportation and Handling while importing. " 8. In view of the description of the integration of the system involved in the business of the assessee the claim made by the assessee before the authorities and the evidence produced before them, namely that Mr. David Smith came to India and integrated the system and completed the test before 31-3-1990 and evidenced by a report from Linotype Ltd., Brentford, London, is valid and authentic and cannot be disputed or rejected. The claim of the assessee that trial production was mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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