2008 (10) TMI 189

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....is a "welfare centre" and that in view of section 32(1) (iv) of the Income-tax Act, as it then stood, concluded that the "welfare centre" would include hospital. The Tribunal also accepted the decision. Against that the Revenue is before us and raises the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee is entitled to depreciation at the rate of 15 per cent. on the furniture and fittings in the hospital on the view that the hospital comes within the term "welfare centre" as appearing in Appendix I, Part II(2) of the Income-tax Rules, 1962?" 2. The assessee has been served but has not chosen to appear. 3. Mr. N. Mu....

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....estaurants and boarding houses, schools, colleges and other educational institutions, libraries, welfare centres, meeting halls, cinema houses theatres and circuses and furniture and fittings let out on hire for use on the occasion of marriages and similar functions, the depreciation allowance is 15 per cent. According to the Tribunal, a hospital will come within the meaning of 'welfare centre'. According to us, the interpretation given by the Tribunal is not correct. It is one of the principles of interpretation in the taxation law that words of ordinary use should be given the meaning which is given by common people. A hospital is a place where the sick are taken care of. When a person is taken to a hospital, nobody will say that he is ta....

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....Then libraries will be welfare centre, schools will be welfare centre, etc., whereas schools and libraries are separately mentioned in the Appendix which is extracted below:   Block of assets   Depreciation allowance as percentage of written down value   (1) (2)       (1)   Part-A Tangible assets I. BUILDINGS Buildings other than those covered by sub-item (3) below which are used mainly for residential purposes.       5   (2)   Buildings which are not used mainly for residential purposes and which are not covered by sub-item (3) below 10     (3)         &....