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TMI Blog1997 (9) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... . 8520, Erlangen, Germany, on a part payment and the balance of the amount is to be paid by the petitioner on supplier's credit for five years. The payment is to carry an interest at the rate of 8.1 per cent. per annum. The said rate of interest of 8.1 per cent. per annum was fixed in consultation with the Government of India, Ministry of Finance, Department of Economic Affairs, New Delhi. It is the contention of the petitioner that the interest so payable by petitioner No. 1-company is exempted from income-tax in accordance with the provisions of sub-clause (iv)(c) of clause (15) of section 10 of the Income-tax Act, 1961, and claiming such exemption, the petitioner wrote to the Government of India, Ministry of Finance, Department of Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Division Bench presided over by the Chief justice K. C. Agarwal (as his Lordship then was). Such appeal was disposed of by their Lordships with liberty to the petitioner to file a fresh writ application with suitable amendment. Thereafter, the present writ application has been filed on the self same ground. Learned counsel appearing for the petitioner has contended, inter alia, that although the petitioner-company may be a medical diagnostic centre, the aforesaid machine is actually used by the petitioner-company for processing goods, as unexposed films are inserted in the scanner and information and status of various parts of the human body are analysed and depicted on such films with the aid of the scanner for making them use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted by Mr. Mitra, appearing for the Revenue, that in any view of the matter, Ajoy Nath Ray J., already having decided by his aforesaid judgment and order that for such processing, such diagnostic centre would not become an industrial undertaking within the meaning of the aforesaid provisions of the Income-tax Act, 1961, merely because the appeal court permitted the petitioner to withdraw the writ application and the appeal, the effect of the said judgment will not stand nullified. Having heard the learned advocates for the parties and considering the application, I am unable to accept the contention of the learned advocate appearing for the petitioners that the medical diagnostic centre, which is using the aforesaid machine, is carryi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A diagnostic centre is, by no ordinary meaning of the words, an industrial undertaking. If cannot become an industrial undertaking merely by purchase of a machine and only for the purpose of tax relief to be claimed by it as owner of the said machine. The purpose of the relief nowhere appears to be the grant of any benefit for the rendering of any professional services. Fourthly, an industrial processing of goods has a certain similarity in the case of each of the goods processed. The products are largely similar or identical to one another. This is usual though not always the case. A scanner machine will, however, produce photographs which are totally different in the case of different patients and the value of the photographs derives fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Chowgule and Co. Pvt. Ltd. v. Union of India [1981] 47 STC 124 does not help the contention of the petitioner. In the aforesaid case, the Supreme Court of India was considering a situation where the concerned company was carrying on the business of mining iron ore and selling it in the export market after processing the goods. The Supreme Court while interpreting section 8(3)(b) of the Central Sales Tax, 1956, held, inter alia, that where any commodity is subjected to a process or treatment with a view to its development or preparation for the market, it would amount to processing of the commodity within the meaning of section 8(3)(b) of the said Act and rule 13. In the said case, the goods which were processed for the very purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sultancy Services (Private) Ltd. [1990] 186 ITR 609 (Cal) as the assessee which was carrying on the business of providing technical and industrial consultancy through electronic data processing and after receiving certain information subjected the same to a treatment or processing with a view to development or preparation for the market and sold to the customers such processed informations. The decision of the Kerala High Court in the case of CIT v. Upasana Hospital [1997] 225 ITR 845 would not also be applicable in the instant case as the Kerala High Court was considering whether any investment allowance under section 32A of the Act can be claimed by a hospital diagnostic centre and, whether running of a hospital where X-ray machines and o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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