TaxTMI 
TaxTMI 
2010 (1) TMI 759
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....n the business of banking. The return of income for the Assessment Year 2003-04 was filed on 27.11.2003 declaring a total income of Rs. 22,24,51,367/- under the normal provisions of the Act. The return was processed u/s.143(1) on 17.03.2004 and a return determined at Rs. 1,82,92,924/- which was issued to the assessee on 30.03.2004. The case was thereafter selected for scrutiny and notice u/s.143(2) was issued to the assessee on 04.10.2004. Order u/s.143(3) was passed on 18.03.2006 arriving at the total income at Rs.49,52,49,900/- and raising a net demand of Rs. 16,28,14,648/-. 4. The CIT u/s. 263 held as follows: "A perusal of the order of assessment for the Assessment Year 2003-04 indicated that the Automated Seller Mac....
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....ash delivery machine and is dependent on computer technology and operates as a computer. Hence, there is no need to revise the depreciation granted. We also would like to bring to your notice because of a change of opinion, an already completed assessment cannot be revised especially based on an audit objection as held by the Supreme Court." 5. The Ld. CIT further held as follows: "I have carefully considered the submissions of the assessee. As stated earlier, the ATMs are Automated Teller System installed by the Bank to facilitate easy cash transaction, whose mechanical parts are controlled by a computer. The ATM being only a part of the system, depreciation on the whole machine cannot be claimed at the rate a....
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....out the intervention of a branch. Using an ATM, customers can access their bank accounts in order to make cash withdrawals, check account balances and perform other banking/financial transactions which may be offered by the particular bank to its customers using the ATM network. In an ATM, customers are identified basis the plastic ATM/Debit card with the magnetic strip. Authentication of the customer is done basis the Personal Identification Number (PIN) which is entered by the customer. 8. Further the Learned Counsel for the assessee submitted elaborate literature about Hardware Architecture and Software Architecture of an ATM. The Learned Counsel further gave an elaborate note on ATM Communication Network and Authenti....
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....e. However the issue before us is whether ATM can at all be considered as computer. It is not a question of any hardware being attached to and used along with the computer. Similarly, in the case of ITO vs Samiran Majumdar, Calcutta [2006] 98 ITD 119 (Kol.) printers and scanners were working in conjunction with a computer and was used as input/output device for the operation of the computer. Hence the Calcutta Tribunal rightly held that the printers and scanners, which are essentially nothing but input and output devices, for the working of the computer should be considered as part of the computer for the purpose of grant of depreciation. 11. We find that the Mumbai ITAT 'A' Bench in the case of Venture Infotek Global (P) Ltd., 25....
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.... under the simple meaning of the word 'computer '. From the definition of computer, it is clear that computer is an electronic data processing device which is composed of various electrical and electronic parts which wired together into a network called computing system. The basic output of a computer is data processing. The POS terminals and ATMs are neither a data processing device nor a composite system of which output is data processing. Automated teller machine "ATM" is a machine used by bankers and others for cash payments. The Hon'ble jurisdictional High Court in the case of CIT vs. IBM World Trade Corporation (1981) 130 ITR 739 (Bom) held that data processing machines are not office appliances and are entitled to developme....