2003 (2) TMI 55

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Tribunal was justified in holding that since the above referred equipments are not independent industrial undertaking but only part of the composite undertaking and therefore the benefit of investment allowance is not available?" Before answering the above question, we may refer to the basic facts. The assessee is a partnership firm running a hospital at Kozhencherry. In the income-tax assessment for the year 1989-90 the assessee claimed investment allowance of Rs. 3,38,375 on the cost of assets like fire extinguishers, lifts, surgical instruments, laboratory equipment, water heaters, x-ray machines, generator, etc. The Assessing Officer did not allow the claim on the ground that the machinery or plant had not been used for the manufac....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ti High Court in CIT v. Dr. M. L. Agarwalla [2002] 258 ITR 102. Counsel appearing for the Revenue submitted that the assessee had installed all the equipment in the hospital for its own use and the same would not qualify as an industrial undertaking. In any view, even if it is an industrial undertaking it is not manufacturing or producing any article or thing. Hospital only gives treatment to patients and does medical treatment. We heard counsel on either side at length. The question that is posed for consideration is whether the assessee is entitled to get investment allowance for various equipment it has installed in the hospital. The relevant provision which is to be construed is sections 34 and 32A(2)(b). On going through the abov....