TaxTMI 
TaxTMI 
1992 (2) TMI 153
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....g computers (N.E.S.A.) ". 2. In the original order, the Inspecting Assistant Commissioner (Assessment) had allowed 10% depreciation and in appeal the learned Commissioner of Income-tax (Appeals) vide his order dated 6-3-1987 set aside the matter to him for verification and allowance of correct depreciation. Again the Inspecting Assistant Commissioner, vide his order dated 31-3-1987 held that only 10% depreciation was allowable. The Inspecting Assistant Commissioner noticed that the assessee had claimed exemption of import duty under Notification No. 114-CUS dated 19-6-1980 issued by the Customs Department under section 25(1) of the Customs Act, 1962 as falling under S.No. 2 of Notification, namely," Photo Composing machines with Key-Boar....
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....as mentioned, inter alia, there that a mini-computer brain of up to 60K is at the heart of the comp set 3560/4560 to control all type setting functions from original keyboarding through play back and editing to final camera ready (reproduction). The learned Inspecting Assistant Commissioner took the view that the item was, in fact, a photo type setting machine devised for use in the printing industry and used as such a printing machine. He took the view that sub-item C(3) of sub-Part III of Part I of Appendix I of the Income-tax Rules, 1962 did not include computer printing machine. He also took the view that the scope could not be enlarged. As already mentioned above, he, therefore, held that the assessee was not entitled to any more than ....
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....city direct from the keyboard. You can set and record play backit and update entire or part jobs at any time. A simple key board command will find any item you need in seconds. Just one diskette stores up to 75 different jobs and up to 250 pages of tax thus eliminating the costly need to re-keyboard entire jobs just to correct or edit a small portion. The optional Dual-diskette Record/Playback module expands your productivity still further with the ability to store format data or duplicate diskettes automatically. An alternative option is available for paper tape record/playback. " The assessee had explained before the learned Commissioner of Income-tax (Appeals) that the comp set was fully computerised and that its main function was to set....
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.... which is treatable as a computer and it would, therefore, fall under the entry referred to above, for which 20% depreciation is allowable. We do not accept the submission made on behalf of the Department by Shri S.K. Kundra, the learned Departmental Representative that the item in question is merely a machine or an improved electronic typewriter and, therefore, it should fall under the general entry. It was also incidentally submitted by Shri Singhvi for the subsequent assessment year, the Assessing Officer had himself granted 20% depreciation on this item. An attempt was made on behalf of the assessee by Shri H.M. Singhvi to say that even in terms of entry C(1)(a) of Sub-Part III of Part I of Appendix to the Depreciation Schedule, 20% dep....