ATM is considered as Computer hence Higher Depreciation rate allowed

CIT Vs NCR Corporation Pvt. Ltd. (Karnataka High Court)

The issue under consideration is whether the ATM can be considered as computer and charged higher rate of depreciation?

In the present case, the assessee is engaged in the business of manufacture of automated teller machines (ATMs) and distribution of NCR book products and commissions in India. AO held that ATMs cannot be termed as computers and therefore are eligible for depreciation to the extent of 25% and not at 60%. Being aggrieved, the assessee preferred an appeal.

High Court states that so long as functions of the computers are performed with other functions and other functions are dependant on the functions of the computer, ATMs are to be treated as computers and are entitled to higher rate of depreciation. It has further been held that computer is integral part of ATM machine and on the basis of information processed by the computer in ATM machine only, the mechanical function of the dispensation of cash or deposit of cash is done. Therefore, it was held that ATMs are computers and are entitled to higher rate of depreciation.

FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT

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