9911796707
TMI Blog1989 (9) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... ant previous year in the financial year ended on 31st March, 1982. 3. In his return of Income as well as at the time of assessment proceedings the assessee had claimed investment allowance in respect of scanner and pacer machines purchased by him. The ITO rejected the assessee's claim in the following manner: "The assessee has claimed investment allowance of Rs. 83,010 in respect of machiner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also be treated as business for the purpose of claiming investment allowance under s. 32A of the Act. Thereafter, the assessee had also explained before the AAC in activity carried on by him which was akin to a Radiologist, who takes X-Ray on X-Ray machine. In this connection, it was stated that the Scanner machine is an electronic machine which scans syrum, proteins, etc. and gives a produce cal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... simpler to utilise the Scanner for Precision and accuracy and to save time and labour. It gives no final product which can be sold in the open market on its own or for which there is a demand except in perhaps some very specific instances. The appellant is not carrying on any such activity of selling these reagents or making use of them in a commercial sense. The appellant is basically a Pathologi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on a recent decision of the Tribunal (Special Bench) in the case of Daks Copy Services (P) Ltd. vs. ITO (1984) 78 CTR (Trib)(Bom) (SB) 107 and in the case of First ITO vs. Dr. P. Vittal Bhat (1984) 20 TTJ (Bang) 507 (SB) : (1983) 6 ITD 560 (Bang) (SB). He, therefore, urged that the ITO should be directed to allow investment allowance under s. 32A of the Act, as claimed by the assessee. The learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an. In order to claim deduction under that section, I am of the view that it would be sufficient if the items manufactured/produced are used in some way or the other. In the instant case in cannot be disputed that both "Reagents" and "Ingredients" are such items which are used by pathologists in carrying on their profession. I would, therefore, direct the ITO to allow investment allowance under s. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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