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TMI Blog2006 (8) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... pathological laboratory could be said to be carrying on a business as an industrial undertaking, which produced an article or thing and was thus entitled to investment allowance u/s. 32A of the Act on the new machinery installed in his clinic ?" 3. Learned counsel for the Revenue, after taking us through Section 32-A of the Income-tax Act, 1961 (as applicable), submitted that the work done in a Pathological Laboratory cannot be put at par to an industrial undertaking, and as there is no end product in the pathological examination of the material supplied, the Tribunal was unjustified in holding that the assessee, a Trust, which is running a Pathological Centre, would not be entitled to investment allowance under Section 32-A of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter conducting the pathological tests. They observed that a person records readings by using machinery, therefore, it could not be said that it is a thing or an article. The Andhra Pradesh High Court concluded that the equipment used for the purpose of conducting pathological tests would not qualify for investment allowance. 7. In the matter of Natvarlal Ambalal Dave v. CIT [1997] 225 ITR 936, (Guj), a Division Bench of this Court has observed that, it is not the requirement of Section 32A of the Income Tax Act, 1961 nor it can be read in the context of the provision, that in order to fulfill the condition that a machinery or plant must have been installed in an industrial undertaking for the purpose of manufacture or production of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t allowance on the expenditure incurred by the firm on purchase of X-ray plant, I.C.C.U. and E.C.G. In the matter of CIT v. Trinity Hospital, [1997] 225 ITR 178, the Rajasthan High Court has held that the expenses incurred for purchasing X-ray machines, Ultra-sound Scanner, foetal monitor to be installed in the hospital would be entitled to investment allowance. The High Court had gone to the extent of saying that the Air-conditioner installed for efficient working of such machines would also be covered within the investment allowance. In the case of CIT v. Professional Information Systems and Management, [2005] 274 ITR 242 (Guj) in the matter of data-processing or computer, a Division Bench of this Court held that the investment al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... production of articles or things and the unit which undertakes such computer services for other concerns would be an industrial undertaking. The same are the observations of the Supreme Court in the matter of CIT v. Peerless Consultancy and Services (P.) Ltd., [2001] 248 ITR 178. The judgment of the Calcutta High Court in the case of CIT v. Shaw Wallace and Co. Ltd. [1993] 201 ITR 17 and Kerala High Court in the matter of CIT v. Datacons P. Ltd., [1985] 155 ITR 66 were pressed into service before the Supreme Court. The Supreme Court observed that learned counsel for the Revenue was unable to show them any judgment of a Court of the country or abroad which takes the view that processing of data is not the processing of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me [2006] 283 ITR 181, to contend that, echo scanning equipment and other articles would be treated to be plant or machinery if these are used in a diagnostic centre. The Division Bench placed its reliance upon the Judgment of this Court in the matter of CIT v. Professional Information Systems and Management [2005] 274 ITR 242. The Division Bench of Allahabad High Court observed that the echo-scanning Equipment produces an echograph, which was like an X-ray machine and therefore investment allowance was permissible. 10. From a juxtapose reading of these judgments of our own High Court, and of different High Courts including the Judgment of the Supreme Court, in the matter of 'data processing', it would be crystal clear that, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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