TMI Blog1989 (1) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... Vijay Diagnostic Centre' in the premises occupied by him. It is common ground that the premises are situated in a multi-storeyed residential-cum-commercial complex and the purchase of the shop by the assessee is governed by an agreement of sale. However, the sale deed had not been executed and registered in favour of the assessee. The assessee claimed depreciation on the premises occupied by him and the Income-tax Officer disallowed the same for want of registration of conveyance deed. The first appellate authority allowed depreciation in the ratio of the decision of the Allahabad High Court in Addl. CIT v. UP State Agro Industrial Corpn. Ltd. [1981] 127 ITR 97, and the Calcutta High Court in CIT v. Steelcrete (P.) Ltd. [1983] 142 ITR 45. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act, 1961, which is in pari materia with sec. 9 of the Indian Income-tax Act, 1922, for the purpose of determining the question whether the assessee is entitled to claim depreciation under sec. 32(1) of the Income-tax Act. Thus, their Lordships held that the assessee is entitled to depreciation on the building purchased and used by it for the purposes of its business even though registered conveyance deed in respect of the building had not been effected during the relevant previous year. Respectfully following the decision of the Honourable Andhra Pradesh High Court in the case cited supra, we dismiss the contention of the revenue. 5. The next point at dispute is whether the assessee is entitled to investment allowance on the equipmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what is said, expression, statement." According to the Concise Oxford Dictionary, "thing" means "Whatever is or may be an object of thought (including or opp. to persons)". X-Ray picture, scanning, ECG and such other objects taken in the diagnostic centre are certainly things produced or manufactured and, therefore, the assessee is entitled to investment allowance. In this connection, he referred to the list of equipments on which the investment allowance was claimed by the assessee (pages 3, 4 and 5 of the paper book) wherein the purposes for which these equipments are being utilised by the assessee have been mentioned. He also relied on the decision of the Bangalore Bench of the Tribunal in First ITO v. Dr. P. Vittal Bhat [1983] 6 ITD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble and indeed is plausible in modern days. If, for instance, an expert equips himself with plant and machinery with which he, with the aid of his professional skill and in collaboration with qualified assistants, is able to turn out an activity which is not strictly a professional activity but savours of a commercial activity as well, it is a case of commercial activity telescoped to professional activity and amounts to a "business" [see Dr. P. Vadamalayan v. CIT [1969] 74 ITR 94 (Mad.) ; CIT v. Dr. V.K. Ramachandran [1981] 128 ITR 727 (Mad.) ; S. Mohan Lal v. R. Kondiah AIR 1979 SC 1132]. Dr. S. Surender Reddy who is running Vijaya Diagnostic Centre can be said to be carrying on business in the light of the pronouncements cited supra and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) Photometer used for the analysis of Electrolytes like Sodium, Potassium etc. in blood. (5) Microscope used for blood cell counting and for Histo-pathologies slides to detect cancer, malarial parasites etc. (6) Incubator used to incubate the test material at particular temperature for a particular period. (7) Air-conditioner used to keep the analytical systems like Modulab at 24 Degree C. (8) Hot Air Oven used to sterilize glassware etc. in dry heat to destroy bacteria etc. (9) Thermostatic Water Bath used to incubate test material at particular temperature for a particular period on indirect heat. (10) Centrifuge used to separate serum from whole blood containing cells etc. (11) P.H. Motor used to know the PH of test mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the disease of the patients. It is not always that the assessee is associated with treating the patient. The result of the examination which is given in the form of a report is certainly an 'article' or 'thing' in the light of the definition as given in New Oxford Illustrated Dictionary to the effect that a thing is what is or may be an object of perception, knowledge or thought. The assessee is producing such a thing as a result of the examinations carried out in his diagnostic centre with the help of the equipments in the laboratory. Therefore, we have no hesitation in holding that the assessee's claim is well-based and the Appellate Assistant Commissioner was justified in allowing the claim of the assessee. 9. Sri Radhakrishna Mur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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