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TMI Blog2018 (7) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... m made by the AO against the claim of assessee @ 40% in the facts and circumstances of the case. 3. The brief facts of the case are that the assessee is a Private Limited Company and conducts its business in the name and style of "H.L.G. Memorial & Charitable Hospital Research Institute Pvt.Ltd." The assessee filed its e-return of income disclosing at a total income of Rs. 51,22,513/-. Notice u/s 143(2) and 142(1) of the Income tax Act, 1961 (in short "Act") alongwith the detailed questionnaire was issued. In response to which AR of the assessee appeared and furnished replies alongwith the audited statements. The AO perusing the schedule of depreciation found that the assessee had claimed depreciation @ 40% in one of the block of assets on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 26.02.2014 passed u/s 143(3) of the Act. 7. Before Ld.CIT(A), the assessee contended that ECG & ECG Accessories, Patient Monitoring System and Colour Doppler device are used as magnetic medical technique to record heart beat and glucose meters of patients and the assessee is entitled to claim @ 40% on such devices ease in accordance with law. 8. Regarding CT scan under the category of Life Saving Equipments, the assessee submitted that MRI scan and CT scan are identical. CT scan helps in non-invasively in saving a human life. Before invention of MRI, CT scan used for detecting tumors, strokes, degenrative diseases, inflammation, infection and other abnormalities in organs. MRI does not provide any distinct superior functionality than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the diagnostic imaging equipment could be considered in the nature of SPECT Gamma Camera. Further, Ld. AR submits that the Co-ordinate Bench of ITAT, Chennai considered that PET/CT scan is very much used in the treatment of cancer and given both anatomic and metabolic information to assess the present condition of cancer growth in a patient. The said instrument is useful not only in detecting cancer but also treating the cancer by making a proper assessment of the condition of the patient suffering from Cancer even at the advanced stage. The imaging technology is used not only in the treatment of cancer but also in the treatment of heart disease and neurological diseases as the PET/CT scan delivers the condition of vascular system of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w Appendix I of Rules and the assessee is not entitled to claim depreciation @ 40%. On perusal of the New Appendix I of Rules as referred by the AO, it is clear that the claim of deprecation of block of assets is provided in New Appendix I which is came into force from AY 2006-07 onwards. Rate of depreciation as provided in New Appendix I is applicable to the assessment year under consideration as it belongs to AY 2011-12. The depreciation for Life Saving Medical Equipment is provided in (iii) of part (A) under the head "Machinery & Plant" wherein it is noticed that no deprecation @ 40% is provided to CT scan, ECG & ECG Accessories, Patient Monitoring System. Therefore, in our opinion, AO is correct in restricting the deprecation on claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of table of rates which the deprecation admissible in terms of New Appendix I which came in to force for AY 2006-07. For better understanding in this regard, the relevant portion of New Appendix I governing the depreciation under Life Saving Medical Equipment at (iii) (xia) of para A is extracted hereunder:- (xia) Life saving medical equipment, being- (a) D.C.Defibrillators for internal use and pace makers (b) Haemodialysors (c) Heart Lung Machine (d) Cobalt Therapy Unit (e) Colour Doppler (f) SPECT Gamma Camera (g) Vascular Angiography System including Digital Subtraction Angiography (h) Ventilator used with anaesthesia apparatus (i) Magnetic Resonance Imaging System (j) Surgical laser (k) Ventilator oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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