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TMI Blog2015 (12) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... erification of the genuineness of certificate and claimed trial run of computers. Decided in favour of assessee for statistical purposes. - I.T.A. No. 819/Ahd/2012 - - - Dated:- 21-8-2015 - SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER And SHRI KUL BHARAT, JUDICIAL MEMBER For The Appellant : Shri Manish J.Shah, AR For The Respondent : Shri D.V. Singh, Sr.DR ORDER PER SHRI KUL BHARAT, JUDICIAL MEMBER : This appeal by the Assessee is directed against the order of the Ld.Commissioner of Income Tax(Appeals)-V, Baroda [ CIT(A) in short] dated 27/03/2012 pertaining to Assessment Year (AY) 2007-08. The Assessee has raised the following grounds of appeal:- 01. On the facts and circumstance of the case as well as in law the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the submissions of the assessee, dismissed the appeal. Aggrieved by the order of the ld.CIT(A), assessee is now in appeal before us. 3. At the time of hearing, the ld.counsel for the assessee submitted that he does not wish to press the ground No.1 being smallness of the amount involved. The ld.Sr.DR has no objection. In view of the submission made by the ld.counsel for the assessee at Bar, we dismiss the ground No.1 of assessee s appeal as not pressed. 4. Ground No.2 is against confirmation of disallowance of depreciation on computers on the ground that the same were not put to use. The ld.counsel for the assessee submitted that the authorities below were not justified in making the disallowance of depreciation. He submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below as well as the judgements relied upon by the ld.counsel for the assessee. The AO disallowed the claim on the basis that the computers are not put to use. The AO was of the view that there must be actual, effective and real user in the commercial sense. And the user must be so linked with the business that it can be said that there is an immediate nexus between the user and the business, i.e. the real business of the assessee. The ld.CIT(A) has decided this issue by observing as under:-- 5.2. I have given my careful consideration to the facts of the case as well as the observation made by the AO and the arguments put forth by the AR. From the letters of Rishabh Software addressed to the appellant, it is seen tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 001 Hello Deepakbhai We hereby confirm having received 88 computers, which, is as per our discussion and understanding, and the same will be retained by us for use on lease for a period of 3 years. This has been subject to positive report on testing, which comprised of checking the detailed configuration of all the machines by our SST department. We will receive this week the final confirmation from our SST department about the computers received this week. This activity will take another couple of days to close. Hence, effectively you can start raising your invoice for lease rent w.e.f. April 07 at the rates mutually agreed upon. For Rishbhi Software P.Ltd. Sd/- Ramesh V.Iyer Head Commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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