sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
From the Courts »
  Suresh M. Jamkhindikar vs. ACIT (Bombay High Court)
 Mangammal @ Thulasi vs. T.B. Raju (Supreme Court)
 Mahabir Industries vs. PCIT (Supreme Court)
  Oriental Bank Of Commerce Vs. Additional Commissioner Of Income Tax
  Suresh M. Jamkhindikar vs. ACIT (Bombay High Court)
  Union of India vs. Pirthwi Singh (Supreme Court)
 Cromption Greaves Limited vs. CIT (ITAT Mumbai)
 Director Of Income Tax Vs. M/s. Modiluft Ltd.
 Director Of Income Tax Vs. M/s. Royal Airways Ltd.
 Lally Motors India (P.) Ltd vs. PCIT (ITAT Amritsar)
  Mehsana District Co-operative vs. DCIT (Gujarat High Court)

Macawber Engineering System ACIT, Circle 8-1 (I) Pvt. Ltd., 130-131 Hindustan Room No. 451,Aayakar Bhavan Kohinoor Complex, LBS Marg Vs. M.K. Road, Mumbai 400020 Vikhroli (W), Mumbai 400083
September, 20th 2012
                         "B" Bench, Mumbai

               Before Shri D. Manmohan, Vice President
                and Shri Rajendra, Accountant Member

                        ITA No. 5312/Mum/2011
                        (Assessment Year: 2008-09)

Macawber Engineering System             ACIT, Circle 8-1
(I) Pvt. Ltd., 130-131 Hindustan    Vs. Room No. 451, Aayakar Bhavan
Kohinoor Complex, LBS Marg              M.K. Road, Mumbai 400020
Vikhroli (W), Mumbai 400083
PAN - AAACM 4275 G
               Appellant                           Respondent

                  Appellant by:     Shri V.C. Shah
                  Respondent by:    Shri Sandeep Goel

                  Date of Hearing:       18.09.2012
                  Date of Pronouncement: 18.09.2012


Per D. Manmohan, V.P.

     This appeal by the assessee is directed against the order dated
23.05.2011 passed by the CIT(A)-22, Mumbai and it pertains to A.Y.

2.    The facts concerning the only issue in dispute are that the assessee
company is engaged in the business of pneumatic conveying systems. The
company is located at Ambarnath, beyond Kalyan wherein there is frequent
power failures making it impossible to carry on accounts, designs and other
technical works dependent on computers. According to the assessee
company use of UPS along with the computer was a necessity so as to
obtain technical information uninterruptedly. UPS is like inverter so as to
protect from sudden power failures by providing immediate power backup.
Assessee claimed that the UPS has to be treated as an integral part of the
computer and hence depreciation provided to the computer to be extended
                                      2                  ITA No. 5312/Mum/2011
                                           Macawber Engineering System (I) Pvt. Ltd.

to the UPS also. The AO as well as the CIT(A) rejected the contention of the
assessee. Hence assessee company is in appeal before us.

3.    The learned counsel for the assessee submitted that the ITAT "D"
Special Bench Mumbai in the case of Datacraft India Ltd. (9 ITR 712)
observed that the expression "Computer" has not been defined in the Income
Tax Act or Rules and hence any device, which is essential to run the
computer, has to be treated as part of the computer and entitled to the same
rate of depreciation as that of the computer.

4.    On the other hand, the learned D.R. submitted that UPS can be used
with any gadget for uninterrupted power supply and it cannot be treated as
part of computer.

5.    We have carefully considered the rival submissions and perused the
record. The plea of the assessee that there was power failure in Ambarnath
and in order to run the computer effectively UPS is an essential ingredient is
not disputed by the AO. It is also not the case of the Revenue that the said
UPS has been used for any other purpose other than connecting the same to
the computer. Having regard to the circumstances of the case and also in
the light of the decision of the Special Bench (supra) we are of the view that
the assessee is entitled to depreciation on UPS at the rate at which
depreciation is available to computers. The AO is directed accordingly.

6.    In the result, appeal filed by the assessee is treated as allowed for
statistical purposes.

Order pronounced in the open court on 18th September 2012.

               Sd/-                                      Sd/-
            (Rajendra)                              (D. Manmohan)
        Accountant Member                           Vice President

Mumbai, Dated: 18th September 2012
                                       3                   ITA No. 5312/Mum/2011
                                             Macawber Engineering System (I) Pvt. Ltd.

Copy to:

   1.   The   Appellant
   2.   The   Respondent
   3.   The   CIT(A) ­ 22, Mumbai
   4.   The   CIT­ 10, Mumbai City
   5.   The   DR, "B" Bench, ITAT, Mumbai

                                                        By Order

//True Copy//
                                                   Assistant Registrar
                                           ITAT, Mumbai Benches, Mumbai
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions