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TMI Blog2014 (2) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the decision in Commissioner of Income-Tax vs. Goyal MG Gases Ltd. [2006 (1) TMI 48 - DELHI HIGH COURT] - Decided against Revenue. Depreciation on computers installed in factory premises – Held that:- There cannot be universal preposition of law that computers are used only in offices and not for manufacturing activities - There may be number of ways in which installation of a computer may enhance and improve the efficiency - There is nothing on record to suggest that the computers were part of the plant and machinery - CIT(Appeals) and the Tribunal treating the same as simplicitor computers and granting depreciation at the rate prescribed under the law calls for no interference – Decided against Revenue. - Tax Appeal No. 942 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reciation on toners and on computers, which were installed by the assessee in his factory premises. 3. With respect to the first issue the stand of the assessee was that the toners were gas cylinders, and therefore, qualified for depreciation at the rate of 60%. The Assessing Officer, however, believed that the toners cannot be categorized as gas cylinders and granted depreciation at the rate of 15% considering them to be part of plant and machinery. 4. The assessee approached the Appellate Commissioner and contended that the chlorine toners are used for transportation of chlorine gas generated in the caustic soda plant of the assessee. Reliance was placed on certificate issued by Executive Director of Gujarat Alkalies Chemicals Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntainer having a volume exceeding 500millitre but not exceeding 1000 liters intended for the storage and transport of compressed gas, including liquefied petroleum gas(LPG) container fitted to a motor vehicle as its fuel tank but not including any other such container fitted to a special transport or under carriage. 11. Relying upon the aforesaid Certificate and the definition of Gas Cylinder or Cylinder under Gas Cylinder Rules, 1981, the Ld Authorized Representative for the assessee submitted that the Ld.CIT(A) has rightly allowed the depreciation at the rate of 60% as claimed by the assessee treating chlorine gas toners as gas cylinders. 12. We have heard both the parties and carefully considered their submissions. Perusal of Appen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... litres intended for storage and transportation of compressed gas including Liquefied Petroleum Gas (LPG). 7. We notice that such an issue was considered by two High Courts of the country and held in favour of the assessee. Reference in this regard may be made to the decision of the Delhi High Court in the case of Commissioner of Income-Tax vs. Goyal MG Gases Ltd. reported in [2008]296 ITR 72 (Delhi), where it was observed that if we interpret the expression gas cylinder to mean cooking gas cylinder , we will be really adding words to the statute which is not permissible. . Relying on the said decision of the Delhi High Court in the case of Commissioner of Income-Tax vs. Goyal MG Gases Ltd.(supra), the Division Bench of Madras High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re entitled to depreciation at 100 per cent. 8. Learned counsel for the assessee also stated that till the stage of Assessment Year 2004-05 such claim of the assessee for higher depreciation was even accepted by the Revenue. 9. Under the circumstances, we do not find that the CIT(Appeals) and the Tribunal committed any error in this respect. Such question, therefore is not required to be considered. 10. Coming to the second question, facts are that during the previous year relevant to the Assessment Year 2007-08 the assessee installed certain computers in its factory premises and claimed depreciation available to computers. The Assessing Officer, however, held that the computers should be treated either as office appliances failing w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as available on record. It is not as if that in factory premises, computers cannot be installed for direct use in manufacturing activity; thereby forming part of machinery used in such activity. There may be number of ways in which installation of a computer may enhance and improve the efficiency. There is nothing on record to suggest that the computers were part of the plant and machinery. 12. We are not oblivion to the decision of this Court in the case of Commissioner of Income-Tax vs. Statronics and Enterprises P.Ltd. reported in [2007] 288 ITR 455(Guj), where computers were treated as part of plant and machinery, and therefore, held entitled to additional depreciation under section 32A of the Act. It was,however, a case where the com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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