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TMI Blog2015 (10) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... lation and permitting deduction under section 43(1) of the Act ? 2. Whether on the facts and in the circumstances of the case expenses incurred for replacing non-Y2K compliant computer with Y2K compliant computer can be claimed as a deduction under section 36(1)(xi) of the Act ? Mr. Abhratosh Majumdar, learned advocate for the respondent submits that the first question is covered in favour of the assessee in view of the judgment of the Supreme Court of India in Deputy Commissioner of Income-tax Vs. Core Health Care Ltd. : [2008] 298 ITR 194 (SC), particularly the principles of law laid down in paragraphs 11, 13 and 14 thereof, which is not disputed by Mrs. Soma Chatterjee, learned Advocate for the appellant. Therefore, in view of the jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut before the 1st day of April, 2000, wholly and exclusively in respect of a non-Y2K compliant computer system, owned by the assessee and used for the purposes of his business or profession, so as to make such computer system Y2K compliant computer system : Provided that no such deduction shall be allowed in respect of such expenditure under any other provisions of this Act : Provided further that no such deduction shall be admissible unless the assessee furnishes in the prescribed form, along with the return of income, the report of an accountant, as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this clause: Explanation.-For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em were changed. From a reading of the definition of "computer system" it is evident that it is a device or collection of devices which includes input and output support devices and is capable of being used in conjunction with external files or more which contain computer programmes, electronic instructions, input data and output data. In the instant case the Tribunal, being the ultimate fact finding authority, found that "Therefore, on the basis of the facts and circumstances as brought on record, we are of the view that the capital expenditure required to replace the entire computer but within a network system should be allowed as an expenditure as was the intention of the legislation in the Finance Act, 1999 by inserting section 36(1)(x ..... X X X X Extracts X X X X X X X X Extracts X X X X
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