Commissioner of Income Tax vs Dr. S.K. Ohri, Prop. Ohri Maternity Hospital

J.S. Khehar, J.—In the present reference addressed to this Court by the Income Tax Appellate Tribunal (Amritsar Bench), an answer has been sought to the following question of law:

Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the assessee, who is a doctor in medical profession was entitled to investment allowance u/s 32A of the Income Tax Act, 1961, on scanning machine?

Learned Counsel for the Revenue has invited this Court''s attention to the decisions rendered by different High Courts dealing with the question referred for adjudication.

Reference in this behalf was first of all made to the decision rendered by the Kerala High Court in Commissioner of Income Tax Vs. Upasana Hospital, . It was pointed out that the investment allowance claimed in the aforestated case, was on account of purchase of X-ray plant and ECG equipment. In Commissioner of Income Tax Vs. Upasana Hospital, , the court arrived at the conclusion that a doctor in the medical profession was entitled to seek a deduction for the purchase of the aforesaid equipment as investment allowance u/s 32A of the Income Tax Act, 1961 (hereinafter referred to as "the Act").

Reference was also made to the decision rendered by the Patna High Court in Commissioner of Income Tax Vs. Dr. L.C. Mitra, , wherein, deduction as investment allowance u/s 32A of the Act was claimed on account of purchase of parts of an X-ray machine. Herein also, the Patna High Court concluded the permissibility of the aforesaid claim at the hands of the assessee who was a practising doctor.

In Commissioner of Income Tax Vs. M.L. Agarwalla, , the Gauhati High Court held that the assessee was entitled to deduction for the purchase of an ultra-sound machine, as also, the purchase of an air-conditioner and a stabilizer, as investment allowance u/s 32A of the Act.

The issue under reference came for determination at the hands of the High Court of Andhra Pradesh in Commissioner of Income Tax Vs. Dr. S. Surender Reddy, , wherein, the purchase of an X-ray machine, fans, stabilizer and scanner, as well as, equipment to be utilized for pathological tests, were treated as purchases falling within the scope of investment allowance u/s 32A of the Act.

The matter was also adjudicated upon by the Gujarat High Court wherein, it arrived at the conclusion that air-conditioner and fans purchased by a professional doctor practising in the field of medical profession would be included within the scope of investment allowance u/s 32A of the Act. The court accordingly allowed a deduction to the assessee for the aforesaid expenses as investment allowance. In this behalf, reference may be made to the decision rendered in Commissioner of Income Tax Vs. Nathubhai H. Patel, .

In view of the above, we are satisfied that the question framed for the determination by this Court relating to the purchase of a scanner machine at the hands of a doctor in the medical profession is entitled to be treated, as investment allowance u/s 32A of the Act.

The reference is accordingly, answered against the Revenue and in favour of the assessee. Reference stands disposed of in the aforesaid terms.