INTERNATIONAL COMPUTERS INDIAN MANUFACTURE LTD Vs. INCOME TAX OFFICER
INCOME TAX APPELLATE TRIBUNAL
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S.N. Rotho, Accountant Member -
(1.) THESE two appeals filed by the same assessee are heard together and disposed of by this common order for the sake of convenience.
(2.) The assessee is a company deriving income from business in selling and/or leasing out computers. The assessment years involved in these appeals are 1973-74 and 1974-75. The assessee follows the year ended 30th September as its previous year.
The present appeals are directed against the order dated 25-11-1980 of the Commissioner passed under Section 263 of the Income-tax Act, 1961 ('the Act').
(3.) THE assessee had claimed development rebate under Section 33 of the Act at 25 per cent on the Computer Systems hired out by it. THE ITO completed the assessments on 14-9-1976 for 1973-74 and on 25-6-1977 for 1974-75, without allowing the assessee's claim, on the ground that the Computer Systems were mere office appliances and so did not qualify for development rebate. THE assessee appealed to the Commissioner (Appeals), who held that the ground given by the ITO to reject the claim of the assessee for development rebate was not tenable. He, therefore, directed the ITO to grant development rebate according to law. THE order of the Commissioner (Appeals) is dated 17-10-1978 for both the years under consideration. THE department appealed to the Tribunal against the decision of the Commissioner (Appeals), but the Tribunal, by their order dated 5-1-1980, confirmed the finding of the Commissioner (Appeals). THE ITO gave effect to the order dated 17-10-1978 of the Commissioner (Appeals) by his order dated 28-11-1978. In these orders, the ITO gave development rebate at 25 per cent on the footing that the equipments leased out by the assessee came under the Fifth Schedule to the Act and as such, were entitled to the higher development rebate at 25 per cent as laid down in Section 33(1)(b)(B)(i)(b).;
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