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TMI Blog2010 (1) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... computers and dismiss the appeal of the assessee. - ITA No.908/Coch/2008 - - - Dated:- 7-1-2010 - T.R. Sood, Asha Vijayaraghavan , JJ. M.D. Inamdar for the Appellant K.R. Das for the Respondent ORDER Per: Asha Vijayaraghavan: This appeal preferred by the assessee is directed against the order dated 26.2.2008 passed by the ld. CIT in the matter of order under section 263 of the I.T. Act, 1961. 2. The appeal filed belatedly with a delay of 188 days. We condone the same. 3. The facts of the case are that the assessee is a public limited company and a scheduled bank is engaged in the business of banking. The return of income for the Assessment Year 2003-04 was filed on 27.11.2003 declaring a total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.02.2008 stated that: The ATMs are not only transacting cash but also do other functions like displaying balance in customer's account, preparing mini statement of account. It has a touch screen mechanism and even the cash is dispensed only after verifying his balance in the account. For functioning of ATMs, it has to have a connectivity with the main server of the bank through cable net work and regular updation of the balance of accounts be done electronically. Hence, without a processor of a computer these operations cannot be carried out. In view of the above, the ATM is not merely a cash delivery machine and is dependent on computer technology and operates as a computer. Hence, there is no need to revise the depreciation granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant and machinery. 4. The order of the AO has been an appeal before the CIT(A) who has also passed an order on the same. Hence the CIT's action u/s. 263 is not called for as the order of the AO is already merged with the order of CIT(A). 7. The Ld. Counsel for the assessee Shri M.D. Inamdar gave a note on the Functionality and operations of ATM as follows: "An Automated Teller Machine (ATM) is the nature of a computerized telecommunications device that provides the custometrs of a bank with access to banking transactions without the intervention of a branch. Using an ATM, customers can access their bank accounts in order to make cash withdrawals, check account balances and perform other banking/financial transactions which may b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstant case. The issue before the Special Bench was whether routers and switches can be classified as computer hardware when they are used along with the computer and when their functions are integrated with the computer. In that case a separate computer was functioning and routers and switches were integrated with that computer and the Special Bench considered whether on such integration routers and switches can also be considered as part of the computer hardware. The Special Bench decided in the affirmative. However the issue before us is whether ATM can at all be considered as computer. It is not a question of any hardware being attached to and used along with the computer. Similarly, in the case of ITO vs Samiran Majumdar, Calcutta [200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computer. There was no substance in the submission of the assessee that any instrument or plant and machinery function of which is based on computer technology can be said to be computer. If this submission of the assessee was accepted then in cases of all units where their large manufacturing process is controlled by computer such units are also to be called as 'computer'. No such intention of the legislature was there when higher rate of depreciation was not provided for computers nor it comes under the simple meaning of the word 'computer '. From the definition of computer, it is clear that computer is an electronic data processing device which is composed of various electrical and electronic parts which wired together into a networ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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