ACIT, CHENNAI V. Bharat Scans Pvt. Ltd., CHENNAI

ITA 1300/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73656 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-02-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 10-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHAJI P JACOB IRS
• Assessee Lawyers: V SRINIVASAN ITP
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , !' , # $! % BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ./ ITA NO.1300(MDS)/2013 # & '& / ASSESSMENT YEAR : 2009-10 THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(2), CHENNAI - 600 034. V. M/S BHARAT SCANS PVT. LTD., 197, PETERS ROAD, ROYAPETTAH, CHENNAI - 600 014. PAN : AABCB 2272 Q (')/ APPELLANT) (+,')/ RESPONDENT) ') - / APPELLANT BY : SHRI SHAJI P. JACOB, IRS, ADDL. CI T +,') - / RESPONDENT BY : SHRI V. SRINIVASAN, ITP . - /0 / DATE OF HEARING : 13 TH FEBRUARY, 2014 12' - /0 / DATE OF PRONOUNCEMENT : 13 TH FEBRUARY, 2014 / O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVAN T ASSESSMENT YEAR IS 2009-10. THE APPEAL IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-III A T CHENNAI, 2 I.T.A. NO. 1300/MDS/13 DATED 18.2.2013 AND ARISES OUT OF THE ASSESSMENT CO MPLETED UNDER SECTION 143(3) OF THE INCOME-TAX ACT, 1961. 2. THE ONLY ISSUE RAISED BY THE REVENUE IN THE PRES ENT APPEAL IS WHETHER THE MEDICAL DIAGNOSTIC IMAGING EQUIPMENT INSTALLED BY THE ASSESSEE COULD BE CONSIDERED IN THE NATURE OF S PECT GAMMA CAMERA AND IF SO, ENTITLED TO FOR DEPRECIATION AT 4 0%. 3. THE ASSESSEE HAS CLAIMED HIGHER AMOUNT OF DEPREC IATION ON PET/CT SCAN CLAIMING IT TO BE LIFESAVING MEDICAL EQ UIPMENT. THIS ISSUE HAS BEEN CONSIDERED BY THE COMMISSIONER OF IN COME TAX (APPEALS) IN A VERY DETAILED MANNER IN THE LIGHT OF THE TECHNICAL AND MEDICAL DETAILS FURNISHED BEFORE HER. ON GOING THR OUGH THE DETAILED DISCUSSION REGARDING THE NATURE AND USE OF PET/CT S CAN, WE DO NOT HAVE ANY DOUBT TO UPHOLD THE ORDER OF THE COMMISSIO NER OF INCOME TAX (APPEALS). THE PET/CT SCAN IS VERY MUCH USED I N THE TREATMENT OF CANCER. THE PET/CT SCAN GIVES BOTH AN ATOMIC AND METABOLIC INFORMATION TO ASSESS THE PRESENT CONDITI ON OF CANCER GROWTH IN A PATIENT. THIS INSTRUMENT IS USEFUL NOT ONLY IN DETECTING CANCER BUT ALSO IN TREATING THE CANCER BY MAKING A PROPER ASSESSMENT OF THE CONDITION OF THE PATIENT. THE PE T/CT SCAN IS ALSO VERY ESSENTIAL IN ASSESSING THE CONDITION OF P ATIENTS SUFFERING FROM CANCER EVEN AT THE ADVANCED STAGE. THIS IMAGI NG TECHNOLOGY 3 I.T.A. NO. 1300/MDS/13 IS USED NOT ONLY IN THE TREATMENT OF CANCER BUT ALS O IN THE TREATMENT OF HEART DISEASES AND NEUROLOGICAL DISEASES, AS THE PET/CT SCAN DELIVERS THE CONDITION OF VASCULAR SYSTEM OF A PATI ENT. 4. IN THESE CIRCUMSTANCES, WE UPHOLD THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS). THE PET/CT S CAN IS ENTITLED FOR HIGHER RATE OF DEPRECIATION AT 40%. 5. IN RESULT, THE APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY, THE 13 TH OF FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K. NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 13 TH FEBRUARY, 2014. KRI. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT, CHENN AI-I, CHENNAI 4. CIT(A)-III , CHENNAI 5. DR 6. GF.