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TMI Blog2008 (10) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... ses in taxing statutes it is the popular meaning which has to be followed it” - It is also well settled that “exemptions under taxing statutes must be strictly construed”. This is a case of depreciation and there is no definition for either “welfare centre” or “hospital” – Hospitals can not be treated as par with welfare centre – benefit of higher depreciation is not allowed. - 160 and 161 of 2008 - - - Dated:- 21-10-2008 - MRS. PRABHA SRIDEVAN and K. K. SASIDHARAN JJ. N. Muralikumaran for the appellant. JUDGMENT The judgment of the court was delivered by MRS. PRABHA SRIDEVAN J. - The assessee is a hospital and it claimed depreciation on furniture and fittings at the rate of 15 per cent. applying old Appendix I of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the term "welfare centre" would include hospitals, creches, schools or canteens. 4. Learned counsel for the appellant also relied on the judgment reported in CIT v. Upasana Hospital and Nursing Home [2001] 250 ITR 78 where the Kerala High Court had considered an identical question and held against the assessee and in favour of the Revenue. The assessee before the Kerala High Court was a partnership firm running a hospital and nursing home. Like the assessee before us, they too claimed depreciation on furniture and fittings at 15 per cent. and the Tribunal allowed it on the ground that "it is not difficult to see that a hospital qualifies as a welfare centre". The High Court held otherwise as follows (page 79): "Under Appendix I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of section 34, be allowed-.... (iv) in the case of any building which has been newly erected after the 31st day of March, 1961, where the building is used solely for the purpose of residence of persons employed in the business and the income of each such person chargeable under the head 'Salaries' is ten thousand rupees or less, or where the building is used solely or mainly for the welfare of such persons as a hospital, creche, school, canteen, library, recreational centre, shelter, rest room or lunch room, a sum equal to forty per cent. of the actual cost of the building to the assessee in respect of the previous year of erection of the building." 7. This was omitted by the Taxation Laws (Amendment and Miscellaneous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Furniture and fittings used in hotels, restaurants 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. 15 8. Further, we find that in various sections like sections 56, 143(3) and 134(4) (c), the Act refers to hospital or other medical institutions. Therefore, the word "hospital" would be used if it was intended that furniture and fittings in the hospitals are entitled for depreciation at 15 per cent. 9. In interpretation of taxing statutes by the honourable Mr. Justice Markandey Katju, judge, Supreme Court of India ..... X X X X Extracts X X X X X X X X Extracts X X X X
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