High Court allows appeal on investment allowance & depreciation for data processing machines, remands for reconsideration.

The High Court allowed the appeal, setting aside the Tribunal's order and remanding the matter for reconsideration regarding the entitlement to investment allowance and additional depreciation on data processing machines. The Court refrained from making any observations on the facts and kept all contentions open. No costs were awarded in the judgment.

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Issues:
1. Entitlement to investment allowance and additional depreciation on data processing machines.

Analysis:
The judgment involves the issue of whether the assessee was entitled to avail of investment allowance and additional depreciation on data processing machines. The assessee, engaged in the business of data processing with computers, claimed investment allowance on computers installed during the year. The Assessing Officer initially rejected the claim, citing lack of manufacture or production of an article in data processing. However, the appellate authority allowed the claim for investment allowance and additional depreciation, considering the print outs produced by the assessee as things. The Tribunal upheld this decision, stating that computers constituted plant and machinery used in the business of manufacturing or producing articles, following relevant court precedents.

The Revenue contended in the appeal that the assessee was not entitled to the investment allowance and additional depreciation, referring to a court judgment where statements prepared through data processing were not considered as articles. The Revenue also cited a Supreme Court judgment. The assessee's counsel argued that data processing amounted to the production of an article. The High Court noted that the Tribunal had not considered a specific court judgment and decided to remand the matter back to the Tribunal for fresh consideration in light of the relevant court precedent. The High Court refrained from making any observations on the facts and kept all contentions open.

In conclusion, the High Court allowed the appeal, setting aside the Tribunal's order and remanding the matter for reconsideration. No costs were awarded in the judgment.

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