2005 (9) TMI 43

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....ing investment allowance to the assessee?" The dispute relates to the assessment year 1984-85. The assessee, who is an individual, carries on proprietary business in the name of M/s. Malhotra Nursing and Maternity Home. The assessee's claim to investment allowance with reference to ultra sound machine equipment shown by the name of Echoscan which is a scanner specially intended for obstetrics and gynaecology was disallowed by the Assessing Officer. By means of the scanner an image is got on the screen for various purposes relating to the assessment of pregnancy, control of foetus heart activity, foetus positioning, foetal sex assessment, foetal malformations, biometry, etc. The claim of the investment allowance was disallowed by the Inco....

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....tor, and (iv) air-conditioning equipment to ensure proper working of these machines. It has been held that the machines and equipment can legally be called machinery or plant installed in a small-scale industrial undertaking for the purpose of manufacture and production of an "article" or "thing" as provided in section 32A(2)(b)(ii) read with section 32A(1) of the Act. The court has taken into consideration the functions, purposes and uses of these machines in the business activities of the hospital. Ultra sound scanner/ultra sonographic machine is an instrument, with a TV monitoring set and a computer and works on sound waves, picture of abdominal organs (liver, gall bladder, pancreas, kidney, uterus etc.) and photographs are obtained, whi....

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....aircraft radio purchase was held to be admissible as the use of aircraft radio. The aforesaid business would fall within the purview of the expression "manufacture" and "production" and the ultimate photograph which came to "produced" as a result of such activities covered by the expression "article" or "thing." The Kerala High Court in the case of Mar Gregorious Memorial Muthoot Medical Centre v. CIT [2003] 261 ITR 443 has held that although a hospital as such could not manufacture or produce any article or thing by separate industrial undertakings, since the hospital could manufacture and produce various products for the benefit of their patients or else the patient had to go outside and get materials like X-ray, scanning reports, etc.....