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TMI Blog2015 (4) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... eries for weighing articles, generating cash memo, etc. Therefore the basic function of the weighing scale falls in the category of plant and machinery and depreciation @15% is allowed. CIT(A) merely reproduced the contentions of the assessee as well as the decision of the Special Bench of ITAT, Mumbai in the case of Datacraft India Ltd. [2010 (7) TMI 642 - ITAT, MUMBAI] and observed that weighing scale should be treated as computer hardware and accordingly allowed the claim of the assessee. It deserves to be noticed that the detailed functions of the weighing scale were not mentioned by the CIT(A). It is not known as to what are the substantial functions of the weighing scale and whether they can independently be operated or not, in ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ven otherwise the paper book consists of copies of the agreements with three parties and the same were already considered by the CIT(A). Having regard to the circumstances of the case we do not find any infirmity in the order passed by the CIT(A) and accordingly we dismiss ground No. 1 of the assessee. Treating of foreign travelling expenditure as capital in nature - Held that:- CIT(A) considered the issue in para 5.3 of his order wherein he observed that foreign travel was for procuring capital goods and hence the AO was justified in disallowing an amount proportionate to the amount of capital goods imported. Here also no material was brought to our notice to controvert the findings of the CIT(A). We, therefore, do not find any justific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and in law, the Ld. CIT(A) erred in allowing depreciation @60% on all equipments falling under the head Computers including Bizebra Weighing Scale and ignoring the fact that the same is weighing scale and not included in the list of hardwares defined as computer . 4. As could be noticed from the assessment order as well as order passed by the CIT(A), assessee claimed depreciation @60% on Bizebra Weighing Scale on the ground that they are part of computers. The AO considered the issue in para 7 of his order wherein he observed that as per the details furnished there are various items in the form of attachments of various types which do not form part of computer and independent of computers. He also observed that a computer, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the weighing scale fall within the meaning of computer hardware as specified by the ITAT Special Bench in the case of Datacraft India Ltd. With these observations the appeal filed by the Revenue is treated as allowed for statistical purposes. 7. Three grounds were raised in the appeal filed by the assesseecompany, i.e.: - i. whether legal/professional and sales promotion expenses are to be treated as capital expenditure or revenue in nature, ii. whether foreign travelling expenditure is capital in nature or not on the ground that most of these expenditures were incurred to import capital goods, and iii. whether the CIT(A) erred in disallowing a sum of ₹ 9.33 crores as expenditure incurred for earning exempt income und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... launch of the retail business and therefore it has to be treated as pre-operative expenditure and it gives the assessee an enduring benefit in which event the expenditure has to be treated as capital in nature. Though the assessee filed a paper book, as per Rule 18(6) of the Appellate Tribunal Rules, only those papers which were referred to and relied upon by the parties during the course of arguments shall alone be treated as part of the record of the Tribunal whereas in the instant case none appeared before us and no material, whatsoever, was brought to our notice and therefore the paper book cannot be taken into consideration. Thus, the assessee has not brought any material to controvert the findings of the learned D.R. Even otherwise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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