2006 (8) TMI 677

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....nce and additional depreciation is allowable on computers ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that data processing and printout would certainly be a thing produced by the assessee even if not a thing manufactured by the assessee and thereby the assessee-company is entitled to deduction under Section 32A ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the computer machinery installed by the assessee-company are plant and machinery as a natural corollary and thereby the additional depreciation is entitled to the assessee ? 2. The assessee is a private limited company established by two t....

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....held that in view of the judgment of the Gujarat High Court in the case of CIT v. Ajay Printing (P) Ltd. [1965]58ITR811(Guj) , the data processing and printout would certainly be a thing produced by the assessee. It was observed that the assessee was entitled to the deduction under Section 32A of the Act. It also observed that the computer machinery installed by the assessee are plant and machinery as a natural corollary, the assessee would be entitled to the additional depreciation and accordingly, held that the CIT was not justified in setting aside the assessments. 3. Mrs. Bhatt, learned Counsel for the Revenue, is heard. None appears for the opponent though the office report shows that the opponent is served. 4. It is the submissi....

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....ry or plant and the extra allowance in respect of machinery or plant installed in any premises used as a hotel) in respect of the previous year in which such machinery or plant is installed or, if the machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year: Provided that no deduction shall be allowed under this clause in respect of- (a) any machinery or plant installed in any office premises or any residential accommodation; x       x     x     x      x    x     x 7. It is submitted that even if the computers and data proce....