TaxTMI 
TaxTMI 
2010 (2) TMI 140
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.... he filed returns of income. He claim the expenditure incurred on purchase of second hand medical equipment from USA dated 31.3.2001. According to the assessee he is having medical equipment which is used for his profession as a cardiologist and he has installed equipment^ both in Mangalore and Mysore for the purpose of investigation concerning cardiac problem as these machineries are old, they often go out of order and the spare parts are not readily available in India and that as and when he visits USA on profession work, he is in the habit of buying second hand machines and after bringing them into India he use sparo parizs after dismantling machineries purchased by him from USA. Accordingly, when he had been to USA in March, 2001, he pu....
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....powered to give a finding that the expenditure was capital in nature, when such issue was not before it? 2. Whether the amount spent by the assessee towards the purchase of a second hand machinery for the purpose of dismantling the same and use the parts of it as spare parts to the existing machinery is allowable expenditure as a renewable expenditure or not? 4. We have heard the counsel for the parties. 5. Mr. R. B. Krishnamurthy, counsel for the assessee contends that the expenditure incurred by the assessee for the purchase of old second hand machinery at USA is to use the same as spare parts to the existing old machineries installed in Bangalore and Mysore by the assessee. Since spare parts are not available, the only cour....
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....Airport in the next assessment year, same cannot be a ground for the revenue to reject the contention of the assessee He further contends that the Commissioner of Income Tax (Appeals) has committed an error in treating the expenditure as a capital in nature as the purpose of purchasing the machinery is to use the same as spare parts to the existing old equipment and purchase of spare parts to the existing machinery cannot be considered as a capital expenditure and it has to be treated as revenue expenditure for the maintenance of the machineries. Therefore he contends that question No. 1 has to be answered in favour of the assessee. He further contends that when the full sale consideration is paid, the goods purchased by him is passed on to....
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....see for the following reasons: It is not in dispute that the assessee is a cardiologist and that he has installed two machineries for the purpose of his profession one at Bangalore and another at Mysore. It is also not the case of the revenue that the equipments installed by the assessee both in Bangalore and Mysore are not old. If old machineries are being used by the assessee, considering the nature of profession of the assessee, one cannot say that the assessee has to wait till the machineries are worn oat and send it for repairs. If anyone direct the assessee to send machineries after the machineries are worn out, then it leads to apathy as the assessee being a cardiologist is required to use these machineries as and when the patients a....