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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 ..... f section 32(1) (iv) of the Income-tax Act, as it then stood, concluded that the "welfare centre" would include hospital. The Tribunal also accepted the decision. Against that the Revenue is before us and raises the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee is entitled to depreciation at the rate of 15 per cent. on the furniture and fittings in the hospital on the view that the hospital comes within the term "welfare centre" as appearing in Appendix I, Part II(2) of the Income-tax Rules, 1962?" 2. The assessee has been served but has not chosen to appear. 3. Mr. N. Muralikumaran, learned senior standing counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, the depreciation allowance is 15 per cent. According to the Tribunal, a hospital will come within the meaning of 'welfare centre'. According to us, the interpretation given by the Tribunal is not correct. It is one of the principles of interpretation in the taxation law that words of ordinary use should be given the meaning which is given by common people. A hospital is a place where the sick are taken care of. When a person is taken to a hospital, nobody will say that he is taken to a welfare centre. A welfare centre is a cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re centre, etc., whereas schools and libraries are separately mentioned in the Appendix which is extracted below: Block of assets Depreciation allowance as percentage of written down value (1) (2) (1) Part-A Tangible assets I. BUILDINGS Buildings other than those covered by sub-item (3) below which are used mainly for residential purposes. 5 (2) Buildings which are not used mainly for residential purposes and which are not covered by sub-item (3) below 10 (3) (i) Buildings used as hotels (ii) Buildings with dwelling units each with plinth area not exceeding 80 square metres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rpreting words and phrases in taxing statutes it is the popular meaning which has to be followed. The popular meaning is that meaning which people conversant with the subject-matter with which the statute is dealing would attribute to 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". However, the word "hospital" has been used in several places in the Act itself: If we employ the above rule of interpretation then as rightly observed by the Kerala High Court no one refers to a "hospital" as a "welfare centre" and no one would include "hospital" in the term "welfare centre" normally. We are, howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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