C.I.T.JDR. vs. DR. SK OHRI

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision : 4.2.2009. The Commissioner of Income Tax, Jalandhar. ....Petitioner Versus Dr. S.K. Ohri, Prop. Ohri Maternity Hospital, Jalandhar. ....Respondent CORAM: Hon'ble Mr. Justice J.S. Khehar Hon'ble Mr. Justice Nawab Singh Present : Mr. Vivek Sethi, Advocate, for the Petitioner-revenue. J.S. Khehar. J. (Oral) In the present reference addressed to this Court by the Income Tax Appellate Tribunal (Amritsar Bench), an answer has been sought to the following proposition of law:- “Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the assessee, who is a Doctor in medical profession was entitled to Investment Allowance under section 32A of the Income-tax Act, 1961 on Scanning Machine?” Learned counsel for the Revenue has invited this Court's attention to the decisions rendered by different High Courts dealing with the proposition referred for adjudication. Reference in this behalf was first of all made to the decision rendered by the Kerala High Court in Commissioner of Income Tax versus Upasana Hospital (1997) 225 ITR 845. It was pointed out that the Investment Allowance claimed in the afore-stated case, was on account (2) of purchase of X-ray Plant and ECG equipment. In Upasana Hospital's case (supra), the Court arrived at the conclusion that a doctor in the medical profession was entitled to seek a deduction for the purchase of aforesaid equipment as Investment Allowance under Section 32A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”). Reference was also made to the decision rendered by the Patna High Court in Commissioner of Income Tax versus Dr. L.C. Mitra (1998) 234 ITR 805 wherein, deduction as Investment Allowance under Section 32A of the Act was claimed on account of purchase of parts of an X-ray machine. Herein also, the Patna High Court concluded the permissibility of the aforesaid claim at the hands of the assessee who was a practising doctor. In Commissioner of Income Tax versus M.L. Aggarwala (1999) 238 ITR 603, the Gauhati High Court held that the assessee was entitled to deduction for the purchase of an Ultra-sound machine, as also, the purchase of an Air-conditioner and a stabilizer, as Investment Allowance under Section 32A of the Act.

The issue under reference came for determination at the hands of the High Court of Andhra Pradesh in Commissioner of Income Tax versus Dr. S. Sunder Reddy (2000) 243 ITR 110, wherein, the purchase of an X-ray machine, fans, stabilizer and scanner, as well as, equipment to be utilized for pathological tests, were treated as purchases falling within the scope of Investment Allowance under Section 32A of the Act. The matter was also adjudicated upon by the Gujarat High Court wherein, it arrived at the conclusion that Air-conditioner and (3) fans purchased by a professional doctor practising in the field of medical would be included within the scope of Investment Allowance under Section 32A of the Act. The Court accordingly allowed a deduction to the assessee for the aforesaid expenses as Investment Allowance. In this behalf, reference may be made to the decision rendered in Commissioner of Income Tax versus Nathu Bhai Patel (2006) 285 ITR 67. In view of the above, we are satisfied that the question framed for the determination by this Court relating to the purchase of a Scanner Machine at the hands of a Doctor in the medical profession is entitled to be treated as Investment Allowance under Section 32A of the Act. The reference is accordingly, answered against the Revenue and in favour of the assessee. Reference stands disposed of in the aforesaid terms. (J.S. Khehar)

Judge

(Nawab Singh) Judge 4.2.2009. SN