Deductibility of medical expenses rejected where costs are personal maintenance and not wholly and exclusively for the profession.

Wear-and-tear allowances are confined to plant or machinery and do not extend to a taxpayer's body, and medical costs cannot be treated as capital allowances. On general deductibility the governing principle is that only payments wholly and exclusively laid out for the purposes of the trade, profession or vocation qualify; medical expenses were held to be, at least in part, personal maintenance and therefore not wholly and exclusively for the trade. The operative effect is that medical expenses are not deductible against income.

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Issues: Whether medical expenses incurred by the taxpayer are deductible against income under the Income Tax rules (whether as general deductible expenses or under wear and tear provisions).

Analysis: The Court examined rule 3 of the Rules Applicable to Cases I and II of Schedule D and the wear and tear provisions relied on by the appellant. It held that wear and tear provisions apply to plant or machinery and cannot be extended to the taxpayer's own body. On the general deduction point the Court applied the principle that only disbursements "wholly and exclusively laid out or expended for the purposes of the trade, profession, employment, or vocation" are deductible; medical expenses were found to be, at least in part, expenses of personal maintenance and not wholly and exclusively for the purposes of the trade or profession.

Conclusion: Medical expenses are not deductible; appeal dismissed and decision is in favour of the Revenue.

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