TaxTMI 
TaxTMI 
2016 (5) TMI 1578
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....mpulses giving debit or credit cash and thereafter dispenses the cash and gives a printed receipt. c) The learned CIT(A) ought to have observed that an ATM is a computerized device automated with the aid of computer, computer peripherals, software and other hardware devices that provides the clients of the Banks with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. d) The learned CIT(A) erred in stating that computer is not an integral part of the ATM machine but is only a telecommunication device for the purpose of cash storage and dispensation. e) The learned CIT(A) ought to have observed that since the ATM machine performs the functions of a computer along with other functions (such as dispending of cash at the time of withdrawal, deposit of cash etc.,) and such other functions are wholly dependent upon the functions of the computer, the ATM machine would qualify to be computer and be entitled to higher depreciation @ 60% under the Act. f) The learned CIT(A) erred in holding that CPU contained in the ATM is merely to control the user interface and transaction device and the processing/verification of the infor....
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....ed and confirmed by the external auditors during the audit of the books of accounts of the appellant (including its branches spared across the country). d) The learned CIT(A) ought to have accepted the quantum (73%) of evidences furnished hitherto in support of additions to fixed assets, as representative sample for the entire additions made during the year under the block "computers and computer software" and allowed the depreciation thereon. e) Notwithstanding without prejudice to the above, the learned CIT(A) ought to have taken the management representation into cognizance to the effect that entire additions to fixed assets are genuine and accordingly allowed depreciation on the balance additions for which invoices could not be furnished by the appellant. 4. Disallowance of expenditure in the nature of penalty - Rs. 1,15,566 a) The learned CIT(A) erred in considering the payments are compensatory in nature like interest payment for delay in filing service tax returns, interest on belated payment of the service tax, payment to weight measurements department, interest on short remittance of service tax etc., as payments in the nature of penalty under the Act. b) The le....
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.... Industries Ltd. The Tribunal in the case of NCR Corporation Ltd. v. ACIT in ITA No.353(Bang)/2010 dated 28.02.2011 has also taken a similar view that ATMS are computers and assessee is entitled to depreciation @ 60%. Similar view was also followed by the Delhi Bench of the Tribunal in the case of DCIT v. Global Trust Bank Ltd. (supra). 5. Now we have been carried through a judgment of the Hon'ble jurisdictional High Court in the case of Diebold Systems Pvt. Ltd. v. Commissioner of Commercial Taxes, 144 STC 4 Kar, in which the Hon'ble High Court has examined the nature of ATMs and has given a categorical finding that ATM is an electronic device which allows bank's customers to make cash withdrawals, and check their account balances at any time without the need of human teller. The ATM is not a computer by itself, but it is connected to a computer that performs the tasks requested by the person using ATMs. The relevant observations of the Hon'ble High Court are extracted hereunder in this regard:- "38. The Supreme Court in several of its judgment has laid down the rule of interpretation for articles of daily use and commonly traded items, which are mentioned in the Taxing Sta....
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....r. Only those devices which do not have its own identity or cannot be used independently without connecting to the computer can only be called as part of the computer for claiming higher rate of depreciation. Moreover, the Hon'ble jurisdictional High Court in the case of Diebold Systems Pvt. Ltd. v. Commissioner of Commercial Taxes (supra) has categorically held that ATM is an electronic device, which allows bank's customers to make cash withdrawals, and check their account balances at any time without the need of human teller and once it is connected to a computer, that performs the tasks requested by the person using ATMs. Therefore, we are of the considered view that that ATM is neither a computer nor a part of the computer and hence higher rate of depreciation cannot be allowed to it. We therefore find no infirmity in the order of CIT(Appeals) in this regard and we confirm the same. 7. With regard to ground No.2, it has been urged on behalf of the assessee that this ground is covered in their favour by various orders of the Tribunal. In the case of CIT v. Orient Ceramics & Industries Ltd., [2011] 11 taxman.com 417 (Delhi) the Hon'ble Delhi High Court following its own judg....