TaxTMI 
TaxTMI 
2019 (6) TMI 1454
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....dentical in nature, the same are taken up together and disposed off by this common order for the sake of convenience. 2. The facts of Asst Year 2013-14 are taken up for adjudication and the decision rendered thereon would apply with equal force for Asst Year 2014-15 also except with variance in figures in respect of assessee appeal. 3. The Ground No. 1 raised by the assessee is general in nature and does not require any specific adjudication. 4. The only identical issue to be decided in these appeals is as to whether the ld CITA was justified in restricting the allowance of depreciation on Automated Teller Machines (ATM) at the rate of 15% as against the claim of 60% by the assessee in the facts and circumstances of the case. 5. The brief facts of this issue are that the assessee is engaged in the business of software development, sale, service and maintenance of ATMs for banks. The assessee entered into contracts with Banks wherein the assessee was awarded the contract to carry out end to end maintenance, software development and integration between ATMs and Banks. It is not in dispute that the ownership of such ATMs would be retained with the assessee company together....
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....bmitted by the assessee, more particularly in pages 1 to 4, it is evident from the pictorial representation thereon, that the ATM has got a card reader, biometric reader, cash camera, consumer awareness mirrors, has got highly reliable note validation technology, having deposit capacity of 10000 bank notes minimum in secure deposit box, minimized jam rate with self diagnosis and failure recovery capability, etc. He also argued that ATM is built to consume upto 40% less energy than the previous generation of cash dispensers currently available in the Indian market and it delivers incremental power savings and sustainable deployment throughout the year. 6.1. We find that the issue under dispute is directly addressed by the co-ordinate bench of Kolkata Tribunal in the case of Royal Bank of Scotland N.V. vs DDIT (International Taxation) reported in (2017) 88 taxmann.com 330 (Kolkata - Trib.) dated 13.4.2016 (wherein one of us was the author) had held that :- 8.2 We have heard the rival submissions. We find that the ATM machines are nothing but computers as they deal with the functions of decoding the information, processing the same and giving the output. The Learned AR sub....
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....mputerized machines which not only allow the customers to withdraw money but they can check the account balance, pay bills, purchase goods and services, and therefore, unless it is computerized and linked with the main server, it is not possible to operate the ATM. 10. In this connection, a reference is also invited to the Information Technology Act, 2000 wherein section 2(i) defines the term "computers" which also includes "computer network". The term "computer network" means the interconnection of one or more computers through the use of satellite, microwave, terrestrial line or other communication media and terminals or a complex consisting of two or more interconnected computers whether or not the interconnection is continuously maintained. From this angle also, Local Area Network (LAN), Wide Area Network (WAN) and ATM would undoubtedly form a part of computer. 11. In the light of the view we have taken above, we direct the AO to allow depreciation at the rate of 60% on LAN, WAN and ATM equipments. We order accordingly. 8.2.2 ......... 8.2.3 In respect of the case relied on by the Learned DR on the decision rendered by this tribunal in assess....
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....e case of CIT vs Saraswat Infotech Ltd in Income Tax Appeal (L) No. 1243 of 2012 dated 15.1.2013. The question raised before the Hon'ble Bombay High Court was as under:- b) Whether on the facts and circumstances of the case the ITAT was right in holding that depreciation on ATM is allowable @ 60% ignoring the fact that ATM is a cash dispensing machine with a projector and therefore is in nature of plant and machinery and therefore depreciation should be provided @ 15% ? The Hon'ble Bombay High Court observed as under:- 3) The Assessing Officer was of the view that the UPS and ATMs would not fall under the category of computers and being part of plant and machinery / office equipment would be eligible for depreciation only at 15%. Similarly, he disallowed the claim for depreciation on software licence on the ground that the same was not put to use in the previous year to the assessment year 2008-09. Consequently the excess claim of depreciation made by the respondent assessee was disallowed. 4) In appeal the CIT(Appeals) upheld the findings of the Assessing Officer. 5) In second appeal, the Tribunal by its order dated 14/3/2012 held that UPS is....
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.... was justified in holding that the assessee is entitled for deduction u/s 80JJAA of the Act in the facts and circumstances of the case. 8.1. The brief facts of this issue are that during the course of assessment proceedings, the ld AO noticed that the assessee had claimed a deduction of Rs. 4,75,71,586/- u/s 80JJAA of the Act in the return of income filed in ITR-6 , however the same has not been claimed in the statement of computation of total income filed for the Asst Year 2013-14. The reason for the same was stated to be that as there is loss and no positive income for the year under consideration. However, after considering the fact because of addition on account of disallowance of depreciation amounting to Rs. 44,98,49,970/-, there will be positive income resulting for the year under consideration, the assessee was asked to justify the claim made in terms of the provisions of section 80JJAA of the Act. In response, the assessee submitted that it is an industrial undertaking, based on the definition under other provisions of the Income Tax Act like section 10(15), 72A(7)(aa) and since there is no definition of 'Industrial Undertaking' under the provisions of section 80JJAA of....