1995 (6) TMI 86

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....facts, in brief, are as under :--- The assessee has claimed investment allowance to the tune of Rs. 42,555. The computer was installed during the year under consideration and was operated by M/s. Total Computer, Bombay. For this purpose, the assessee has rented a room but the tenant without paying any rent left behind the computer and accessories. As a consequence to this, the computer was taken by the assessee in its possession and the price of the computer was got confirmed from the market and the assessee brought it in assessee's books by debiting the computer account and crediting the rent account. In other words, the assessee has treated this as purchase during the year under consideration. The assessee has submitted the bill wise cla....

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....ision of the Hon'ble Supreme Court in the case of CIT v. T.N. Aravinda Reddy [1979] 120 ITR 46 and submitted that the order of the learned CIT(A) is liable to be set aside. 5. As against this, the learned Departmental Representative supported the order of the revenue authorities and submitted that by no dint of imagination, it could be said that the assessee has purchased the computer and as such, the assessee is not entitled to the claim of investment allowance and depreciation. 6. We have heard the rival submissions and have gone through the orders of the revenue authorities and the decision of the Hon'ble Supreme Court. In the case of T.N. Aravinda Reddy, the Hon'ble Supreme Court affirmed the decision of the Hon'ble Andhra Pradesh Hig....