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TMI Blog2005 (11) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... nt business activity different from professional service rendered as physician by the assessee - Tribunal is right in holding that the intensive coronary care unit is a SSI undertaking within the meaning of section 32A, and directing the Income-tax Officer to allow investment allowance on the heart monitoring machine and treadmill machine in the hospital - - - - - Dated:- 24-11-2005 - Judge(s) : D. A. MEHTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by Ms. H.N. Devani J.- The Income-tax Appellate Tribunal, Ahmedabad Bench "B", has referred the following questions under section 256(2) of the Income-tax Act, 1961 ("the Act"), at the instance of the Commissioner of Income-tax, Ahmedabad: For assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Officer to allow investment allowance on the heart monitoring machine and treadmill machine in the hospital? 3. Whether, the Income-tax Appellate Tribunal is right in law and on facts in directing the Income-tax Officer to allow additional depreciation without verifying the utilization and location of assets of air-conditioners and fans?" The assessment years involved are 1982-83 and 1983-84 and the relevant accounting periods are the financial years 1981-82 and 1982-83, respectively. The assessee, an individual, is a leading cardiologist, who at the relevant time, was also running a heart hospital in which there was a special intensive coronary care unit with sophisticated machines. During the year under considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearance on behalf of the respondent-assessee. In so far as question No. 1 for the assessment year 1982-83 is concerned, Mrs. Bhatt supported the findings of the Assessing Officer and submitted that the Assessing Officer was right in making the addition of Rs. 1,33,000. As can be seen from the order of the Tribunal, the Tribunal has reiterated and confirmed the findings of the Commissioner of Income-tax (Appeals). Hence, it would be pertinent to advert to the following findings of the Commissioner of Income-tax (Appeals): "I have carefully heard the appellant and his counsel on this point. I have also gone through the detailed observations made by the Income-tax Officer in his assessment order; and I have also had occasion to pursue th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the addition of Rs. 1,33,000 made by the Assessing Officer on account of the construction of the building. Accordingly, question No. 1 in relation to the assessment year 1982-83 is answered in the affirmative, i.e., in favour of the assessee and against the Revenue. In so far as question No. 2 for the assessment year 1982-83 and questions Nos. 1 and 2 for the assessment year 1983-84 are concerned, Mrs. Bhatt has submitted that the assessee was a cardiologist and used the heart monitoring machine and treadmill machine only in relation to his professional activities as a physician and cardiologist and that the said machines were not used for the production of any article or thing. Reiterating the reasoning of the Assessing Officer, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treadmill cannot be said to be an article or thing as contemplated under the provisions of section 32A of the Act, and urged that the question be answered in favour of the Revenue. As can be seen from the order of the Tribunal, the Tribunal upon considering the composite functional aspects of the heart monitoring and treadmill machines has found that the intensive coronary unit set up by the assessee wherein treatment which is rendered with the aid of the aforesaid sophisticated machines is in the nature of an industrial undertaking which manufactures or produces articles or things by way of printing, functional status of the heart on ECG paper through the DC defibrillator recorder, while the patient undergoes stress test. The Tribunal al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... troduced in the recorder at the central station of the unit and electrical activity of the heart is recorded and electro-cardiograph comes out. This electro-cardiograph is quite different and distinct from the original paper. The paper that comes out as a processed paper through machines is not only totally different from the original paper, but such paper is not in any manner reusable in its original form. The processed paper is a very important record for the doctor and the patient. Thus, the processed paper in the form of electro-cardiograph is a totally different commodity as compared to the raw material inputs, which amounts to production of an article or thing, and satisfies the conditions laid down under section 32A of the Act. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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