H.L.G. Memorial Hospital (P) Ltd., [Formerly H.L.G. Memorial & Charitable Hospital Research Institute (P) Ltd.,], Asansol V. ACIT, Circle - 2, , Asansol

ITA 2005/KOL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2102 (ITAT-KOLKATA)
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 19-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHANKAR HALDER
• Assessee Lawyers: K M ROY
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D, BENC H KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM ./ITA NO.2005/KOL/2018 ( / ASSESSMENT YEAR: 2010-11) H.L.G. MEMORIAL HOSPITAL P LTD. (FORMERLY H.L.G. MEMORIAL & CHARITABLE HOSPITAL RESEARCH INSTITUTE P LTD. ) VIVEKANANDA SARANI (SEN RELIGH ROAD), ASANSOL-713305. VS. ACIT, CIRCLE-2, ASANSOL ./ ./PAN/GIR NO.: AABCH 3927 P (ASSESSEE) .. (REVENUE) ASSESSEE BY : SHRI K.M. ROY, FCA RESPONDENT BY : SHRI SHANKAR HALDER, JCIT, SR. DR / DATE OF HEARING : 06/05/2019 /DATE OF PRONOUNCEMENT : 19/06/2019 / O R D E R PER DR. A. L. SAINI: THE CAPTIONED APPEAL FILED BY THE ASSESSEE , PER TAINING TO ASSESSMENT YEAR 2010-11, IS DIRECTED AGAINST THE ORDER PASSED BY TH E COMMISSIONER OF INCOME TAX (APPEAL)-ASANSOL, WHICH IN TURN ARISES OUT OF AN AS SESSMENT ORDER PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME TAX ACT , 1961 (IN SHORT THE ACT) DATED 11/03/2013. H.L.G. MEMORIAL HOSPITAL (P) LTD. (FORMERLY H.L.G.M EMORIAL & CHARITABLE HOSPITAL RESEARCH INSTITUTE P LTD.) ITA NO.2005/KOL/2018 ASSESSMENT YEAR:2010-11 P PP PA AA AG GG GE EE E | || | 2 22 2 2. GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE AS FOLLOWS: 1. THAT LD. A.O. HAS ERRED IN DISALLOWING DEPRECIAT ION @40% ON LIFE SAVINGS EQUIPMENTS AND RESTRICTED THE SAME @ 15% WITHOUT CONSIDERING THE SUBMISSION AND DETAILS OF EQUIPMENTS AND ITS AP PLICATION. LD. CIT(APPEALS) HAS CONFIRMED THE SAME, WHICH IS UNCAL LED FOR OUGHT TO BE DELETED. 2. THAT, NEITHER LD. A.O. AND NOR CIT(APPEALS) HAS GONE INTO THE DETAILS OF EQUIPMENTS APART FROM C.T. SCAN AND HAS NOT CONSIDE RED THE NATURE OF ALL THE EQUIPMENTS AND ITS APPLICATION FOR SAVING THE L IFE OF PATIENTS IN CRISIS. BUT LD. A.O. SUO-MOTO, HAS DISALLOWED THE DEPRECIAT ION @ 40% BEING CLAIMED BY THE APPELLANT COMPANY AND RESTRICTED IT TO @ 15% AND MADE ADDITION OF RS. 20,70,331/-. THOUGH, IN FACT, EQUIP MENTS ARE INDEED, USED AND APPLIED IN CRISIS TO SAVE LIFE OF THE PATIENTS AND ALL ARE LIFE SAVING MACHINES HENCE, SUCH DISALLOWANCE AND ADDITIONS TH EREON ARE UNJUSTIFIED AND OUGHT TO BE DELETED. AND; 3. THAT THE APPELLANT CRAVES LEAVE TO AMEND, ALTER, MODIFY, SUBSTITUTE ANY OR ALL OF THE GROUNDS. 3. BRIEF FACTS QUA THE ISSUE ARE THAT DURING THE CO URSE OF ASSESSMENT PROCEEDINGS, AO NOTICED THAT THE ASSESSEE CLAIMED DEPRECIATION @ 40% ON LIFE SAVING DEVICES. THE ASSESSING OFFICER NOTED THAT THE ASSESSEE HAS C LAIMED DEPRECIATION @ 40% ON EQUIPMENT AND DEVICES VIZ. CT SCANNER MACHINE (MOD EL NO. SOMATOM SPIRIT) UNDER HEAD MAGNATIC RESONANCE IMAGING SYST EM; FIVE PARA ECG MACHINE PATIENT MONITORING SYSTEM AND ACCESSORIES TO ECG MACHINE UNDER HEAD COLOUR DOPPLER. CONSIDERING THE REPLY OF THE ASSE SSEE, IT WAS NOTED BY AO THAT NONE OF THE ABOVE MENTIONED EQUIPMENTS / DEVICES WAS ENUMERATED IN THE DEPRECIATION SCHEDULE (ASSESSMENT YEAR 2006-07 ONWA RDS), I.T. RULES, 1962 FOR LIFE SAVING MEDICAL EQUIPMENTS WHICH IS VERY MUCH EQUIPM ENT / DEVICE SPECIFIC. IN VIEW OF THE ABOVE THE DEPRECIATION CLAIMED BY THE A SSESSEE WAS RESTRICTED TO 15% IN PLACE OF 40%. THEREFORE, THE DIFFERENCE OF RS. 2 0,70,031/- (40% - 15%) OF RS. 33,12,051/- WAS ADDED BY AO TO THE TOTAL INCOME OF THE ASSESSEE. H.L.G. MEMORIAL HOSPITAL (P) LTD. (FORMERLY H.L.G.M EMORIAL & CHARITABLE HOSPITAL RESEARCH INSTITUTE P LTD.) ITA NO.2005/KOL/2018 ASSESSMENT YEAR:2010-11 P PP PA AA AG GG GE EE E | || | 3 33 3 4. AGGRIEVED BY THE STAND SO TAKEN BY THE ASSESSING OFFICER, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) WHO HAS CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 5. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE A SSESSEE IS IN APPEAL BEFORE US. 6. THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW WHEREAS THE LD. DR HAS PRIMARI LY REITERATED THE STAND TAKEN BY THE ASSESSING OFFICER WHICH WE HAVE ALREADY NOTED I N OUR EARLIER PARA AND THE SAME IS NOT BEING REPEATED FOR THE SAKE OF BREVITY. 7. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL AVAILABLE ON RECORD. WE NOTE THAT THE ISSUE INVOLVED UNDER CONSIDERATION IS NO LONGER RES INTEGRA. THE C.T. SCANNER MACHINE IS ELIGIBLE FOR DEPRECIATION @ 40% AND THE SAME HAS BEEN UPHELD BY THE CO-ORDINATE BENCH OF CHENNAI ITAT IN THE CASE OF M/S BHARAT SCANS PVT. LTD. IN I.T.A. NO. 1300/MDS/2013 ORDER D T 13.02.2014 WHEREIN IT WAS HELD AS FOLLOWS: 3. THE ASSESSEE HAS CLAIMED HIGHER AMOUNT OF DEPR ECIATION ON PET/CT SCAN CLAIMING IT TO BE LIFE SAVING MEDICAL EQUIPMENT. TH IS ISSUE HAS BEEN CONSIDERED BY THE COMMISSIONER OF INCOME TAX (APPEALS) IN A VERY DETAILED MANNER IN THE LIGHT OF THE TECHNICAL AND MEDICAL DETAILS FURNISHED BEFO RE HER. ON GOING THROUGH THE DETAILED DISCUSSION REGARDING THE NATURE AND USE O F PET/CT SCAN, WE DO NOT HAVE ANY DOUBT TO UPHOLD THE ORDER OF THE COMMISSIONER O F INCOME TAX (APPEALS). THE PET/CT SCAN GIVES BOTH ANATOMIC AND METABOLIC INFOR MATION TO ASSESS THE PRESENT CONDITION OF CANCER GROWTH IN A PATIENT. TH IS 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 PET / CT SCAN IS ALSO VERY ESSENTIAL IS ASSESSING THE CONDITION OF PATIENTS SUFFERING FROM CANCER EVEN AT THE ADVANCED STAGE. THIS IMAGINE 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 A PATI ENT. 4. IN THESE CIRCUMSTANCES, WE UPHOLD THE ORDER OF C OMMISSIONER OF INCOME TAX (APPEALS). THE PET / CT SCAN IS ENTITLED FOR HIGHER RATE OF DEPRECIATION AT 40%. THEREFORE RESPECTFULLY FOLLOWING THE JUDGMENT OF TH E CO-ORDINATE BENCH OF CHENNAI ITAT IN THE CASE OF M/S BHARAT SCANS PVT. LTD. (SUPRA) WE ALLOW THE H.L.G. MEMORIAL HOSPITAL (P) LTD. (FORMERLY H.L.G.M EMORIAL & CHARITABLE HOSPITAL RESEARCH INSTITUTE P LTD.) ITA NO.2005/KOL/2018 ASSESSMENT YEAR:2010-11 P PP PA AA AG GG GE EE E | || | 4 44 4 CLAIM OF THE ASSESSEE, AND HENCE ASSESSING OFFICER IS DIRECTED TO ALLOW DEPRECIATION @ 40%. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE COURT ON 19.06.2019 SD/- ( S.S.GODARA ) SD/- (A.L.SAINI) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / DATE: 19/06/2019 ( SB, SR.PS ) COPY OF THE ORDER FORWARDED TO: 1. H.L.G. MEMORIAL HOSPITAL (P) LTD. (FORMERLY H.L. G. MEMORIAL & CHARITABLE HOSPITAL RESEARCH INDSTITUTE (P) LTD. ) 2. ACIT, CIRCLE-2, ASANSOL 3. C.I.T(A)- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. 6. GUARD FILE. TRUE COPY BY ORDER ASSIST ANT REGISTRAR ITAT, KOLKA TA BENCHES