TaxTMI 
TaxTMI 
1994 (11) TMI 152
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....und that the assessee derives income from profession and there is no question of allowing grant of investment allowance. He further observed that the assessee is not engaged in the business of manufacturing or producing any article or thing which are conditions precedent for grant of such investment allowance under s. 32A. 3. The learned CIT(A) observed that various decisions cited by the assessee's counsel relate to grant of investment allowance on X-ray machine. The claim of investment allowance on various items of plant installed in the years under consideration cannot be equated with the X-ray machine, as the items of plant and equipments under consideration do not produce something different than the raw material as in the case of X....
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....boratory) which is obviously a business activity and therefore the various items of plant installed in the said diagnostic centre should be regarded as items of plant installed and used by the industrial undertaking for the purpose of manufacture or production of article or thing by which certain reports were prepared which enabled doctors to properly diagnose the disease of the patients. Such reports whether obtained through mechanical device through such equipments installed in the centre or prepared by the technical staff with the help of these sophisticated plant amounts to manufacture or production of article or thing as contemplated in s. 32A. The learned counsel also submitted that even office appliances, road vehicles and furnitures....
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.... used in the diagnostic centre which are used by the doctors for proper diagnosis of the disease of the patients. The report produced by the user of the said plant would be covered within the meaning of expression "article or thing" used in s. 32A. He, therefore, urged that investment allowance should be granted on all the items of plant and equipments. 5. The learned Senior Departmental Representative supported the orders of the learned Departmental authorities and relied on the reasons recorded in the orders passed by the ITO and by the CIT(A). 6. We have carefully considered the rival submissions made by the learned representatives of the parties and have also gone through the orders of the learned Departmental authorities. We have....
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....onclusion that a diagnostic centre in which X-ray machine/plant was set up, should be regarded as business activity carried on by the industrial undertaking. The Special Bench of the Tribunal had relied upon various judgments while arriving at such a conclusion. In view of the elaborate discussions made in the said decision, the conditions mentioned in (i) stand fulfilled in the present case. We accordingly hold that the assessee had installed and used various items of plants and equipments for carrying on the business of running diagnostic centre which can be covered by the expression "industrial undertaking" used in the aforesaid section. 9. The next question which arises for our consideration is whether such items of plant and equipme....
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....would make no difference if the results of examination carried out with the help of various items of plant are obtained from the said plant or are prepared manually by the concerned staff with the help of data obtained from the user of other types of plant used in the diagnostic centre. As a result of carrying out various tests and examination of the samples of blood, etc. the person concerned may obtain report through printing process installed in the concerned items of plant or he may prepare report on the basis of data and details provided by such equipments and plant. In all such cases the end product viz., article or thing which is produced with the help of such items of plant and equipments is a "report" on the basis of which the doct....