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TMI Blog2016 (9) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... ew that the concurrent findings of fact, rendered by the CIT (Appeals) and the Income Tax Appellate Tribunal, do not call for any interference, as no substantial question of law, is involved. - T.C.A. No. 624 of 2016 - - - Dated:- 2-9-2016 - S. Manikumar And D. Krishna Kumar, JJ. For the Appellant : Mr.S.Sridhar For the Respondent : Mr.M.Swaminathan ORDER ( Order of the Court was made by S. Manikumar, J. ) Tax Case Appeal is directed against the order dated 14.01.2016 made in I.T.A.No.2829/Mds/2015, for the assessment year 2011-2012, in the matter of M/s.Dinamalar, Tirunelveli, by which, the Income Tax Appellate Tribunal, B Bench, Chennai, has dismissed the appeal filed by the revenue. 2. Brief facts leading to the appeal are that the appellant-assessee is a firm engaged in the business of publication of Daily Newspaper and filed its return of income for the assessment year 2011-12, on 21.03.2013, admitting a total income of ₹ 40,69,56,311/-. The return was processed under Section 143(1) of the Income Tax Act, 1961 and subsequently, the case was selected for scrutiny under CASS. The Assistant Commissioner of Income tax, Circle-1, Tirunelveli, iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... devices. The disputed items are under item(3) which will not come under Plant Machinery which is eligible for 15%. (ii) The assessing officer allowed depreciation of15% as against the claim of 80% for the following items 1) Control Panel Board and 2) Transformer with out considering whether these items are not covered by sub- items 2 or 3 or 8 of the Depreciation schedule. (iii) The assessing officer failed to consider that those two items come under sub-section 8(B a) Automatic Electrical Load monitoring systems and 8(Ec, Ed) Automatic Voltage controller, power factor controller fcr AC Motors of the schedule and hence 15% depreciation is not applicable but 80% applicable which has been rightly claimed. 5. While considering the definition, Transformer , as per Wikepedia, vide order, dated 21.10.2014, in I.T.A.No.12/2014-15, the Commissioner of Income-Tax (Appeals)-II, Madurai, has upheld the findings of the assessing officer, as hereunder: 4.5. The definition of a transformer as per Wikepedia is as under:- A transformer is an electrical device that transfers energy between two or more circuits through electromagnetic induction and are designed to effici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amuna Power LTD [358 I.T.R 47 (Delhi)]. (ii) The assessing officer failed to consider the decision made in the case A.C.l.T Circle -12(1) vs G.E. Capital Business NewDelhi Process Management services Pvt. Ltd., AIFACS IN I.T.A No.2887/Del/2011 for the assessment year 2007 -08 in which case the claim of Depreciation @ 60% was allowed on Laptops, Printer, Scanner, Laptop Mouse, IBM San Switches, Projector, Pendrive, Network equipment, router pack desktop with monitor, visual impex etc. (iii) The assessing officer failed to consider the decision made in the case of CIT vs. BSES Rajdhani powers Ltd In I.T. Appeal No.1266 (Delhi) of 2010, Hon ble Delhi High Court held that the computer accessories and peripherals such as printers, scanners and servers etc., form an integral part of computer system and in fact, the computer accessories and peripherals cannot be used without computer and consequently as they are the part of computer system, they are entitled to 60% of depreciation. (iv) The above decision was followed in the case of Omni Globe Information and Technologies India (P) Ltd (131 I.T.D 280 (Delhi)) (v) In the case of DCIT vs Data Craft India Ltd in I.T.A. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b) One Standard Conveyor; c) One plate stacker. 5.8 Name of asset in the invoice as Register TY-800 AOL Vision plate punching and bending system . Assessee classified this machine with the description CTP machine. It is surprising how Appellant has modified the name of the Asset. Normally the name of the machine in the accounts should always be what is indicated in the invoice and in my view Appellant has no choice of writing the description as it wishes. When Appellant questioned stated that it is based on the function it performs. 5.9 Increasingly organizations are moving towards computerized integrated manufacturing, where more and more computers, robots, and microprocessors are used in conjunction with the machines. But the machines cannot be called as computers even though computer is an integral and dedicated part of the whole machine. That computer in the machine cannot be used for any other purpose. For example a CNC (Computerized Numerically Controlled) lathe machine has a computer and microprocessor to control the movement of the spindle but that cannot make a CNC lathe as a computer. It still does machining, cutting metal and creating shapes in the metal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal in I.T.A.No.2829/Mds/2013, contending inter alia, (i) The Commissioner of Income Tax (Appeals) has erred in sustaining the addition of ₹ 1,80,229/- being the disallowance of the claim of depreciation at 80% and the grant of depreciation at 15% by the Revenue, since these equipments cannot be classified in any of the items mentioned in the depreciation table New Appendix-I-III-(8)(ix) of the Income Tax Rules. (ii) The Commissioner of Income Tax (Appeals) has erred in sustaining the addition of ₹ 17,13,508/- ₹ 9,01,181/- being the disallowance of the claim of depreciation at 60% and the grant of depreciation at 15% by the Revenue since these items cannot be considered as Computers falling in Appendix-I III (5) of the Income Tax Rules. 11. Before the Tribunal, as regards claim of depreciation @ 80%, on control panel board and transformer , the appellant-assessee has contended that the same can be classified under the head, B.Instrumentation and monetary systems for monitoring energy flows , as mentioned in New Appendix-I-III-(8)(ix)B and therefore, they are entitled to depreciation @ 80%, as provided under the Act. Considering the arguments of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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