Income Tax Appellate Tribunal - Kolkata
H.L.G. Memorial Hospital (P) Ltd., ... vs Acit, Circle - 2, , Asansol on 19 June, 2019
IN THE INCOME TAX APPELLATE TRIBUNAL "D", BENCH KOLKATA BEFORE SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM आयकरअपीलसं./ITA No.2005/Kol/2018 ( नधारणवष / Assessment Year: 2010-11) H.L.G. Memorial Hospital P Ltd. Vs. ACIT, Circle-2, Asansol (formerly H.L.G. Memorial & Charitable Hospital Research Institute P Ltd. ) Vivekananda Sarani (Sen Religh Road), Asansol-713305.
थायीले खासं . /जीआइआरसं . /PAN/GIR No.: AABCH 3927 P (Assessee) .. (Revenue) Assessee by : Shri K.M. Roy, FCA Respondent by : Shri Shankar Halder, JCIT, Sr. DR सुनवाईक तार ख/ Date of Hearing : 06/05/2019 घोषणाक तार ख/Date of Pronouncement : 19/06/2019 आदे श / O R D E R Per Dr. A. L. Saini:
The captioned appeal filed by the Assessee , pertaining to assessment year 2010-11, is directed against the order passed by the Commissioner of Income Tax (Appeal)-Asansol, which in turn arises out of an assessment 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.Memorial & Charitable Hospital Research Institute P Ltd.) I TA No .2 0 0 5 / Ko l /2 0 1 8 A s se s smen t Yea r: 2 0 1 0 - 1 1
2. Grounds of appeal raised by the assessee are as follows:
1. That ld. A.O. has erred in disallowing depreciation @40% on " Life Savings Equipments" and restricted the same @ 15% without considering the submission and details of equipments and its application. Ld. CIT(Appeals) has confirmed the same, which is uncalled 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 considered the nature of all the equipments and its application for saving the life of patients in crisis.
But ld. A.O. suo-moto, has disallowed the depreciation @ 40% being claimed by the Appellant company and restricted it to @ 15% and made addition of Rs. 20,70,331/-. Though, in fact, equipments are indeed, used and applied in crisis to save life of the patients and all are " Life Saving Machines" Hence, such disallowance and additions thereon 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 course of assessment proceedings, AO noticed that the assessee claimed depreciation @ 40% on life saving devices. The Assessing Officer noted that the assessee has claimed depreciation @ 40% on equipment and devices viz. CT Scanner Machine (Model No. SOMATOM SPIRIT) under head Magnatic Resonance Imaging System; five para ECG Machine patient monitoring system and accessories to ECG machine under head Colour Doppler. Considering the reply of the assessee, it was noted by AO that none of the above mentioned equipment's / devices was enumerated in the depreciation schedule (assessment year 2006-07 onwards), I.T. Rules, 1962 for life saving medical equipments which is very much equipment / device specific. In view of the above the depreciation claimed by the assessee was restricted to 15% in place of 40%. Therefore, the difference of Rs. 20,70,031/- (40% - 15%) of Rs. 33,12,051/- was added by AO to the total income of the assessee.
Pa g e | 2 H.L.G. Memorial Hospital (P) Ltd. (formerly H.L.G.Memorial & Charitable Hospital Research Institute P Ltd.) I TA No .2 0 0 5 / Ko l /2 0 1 8 A s se s smen t Yea r: 2 0 1 0 - 1 1
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 assessee 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 primarily reiterated the stand taken by the Assessing Officer which we have already noted in 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 material 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 dt 13.02.2014 wherein it was held as follows:
" 3. The assessee has claimed higher amount of depreciation on PET/CT scan claiming it to be life saving medical equipment. This 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 before her. On going through the detailed discussion regarding the nature and use of PET/CT scan, we do not have any doubt to uphold the order of the Commissioner of Income Tax (Appeals). The PET/CT scan gives both anatomic and metabolic information to assess the present condition 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 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 patient.
4. In these circumstances, we uphold the order of Commissioner of Income Tax (Appeals). The PET / CT scan is entitled for higher rate of depreciation at 40%."
Therefore respectfully following the judgment of the co-ordinate Bench of Chennai ITAT in the case of M/s Bharat Scans Pvt. Ltd. (supra) we allow the Pa g e | 3 H.L.G. Memorial Hospital (P) Ltd. (formerly H.L.G.Memorial & Charitable Hospital Research Institute P Ltd.) I TA No .2 0 0 5 / Ko l /2 0 1 8 A s se s smen t Yea r: 2 0 1 0 - 1 1 claim of the assessee, and hence Assessing Officer is directed to allow depreciation @ 40%.
8. In the result, the appeal of the assessee is allowed.
Order pronounced in the Court on 19.06.2019 Sd/- Sd/-
(S.S.GODARA) (A.L.SAINI) या यकसद य / JUDICIAL MEMBER लेखासद य / ACCOUNTANT MEMBER दनांक/ 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 Assistant Registrar ITAT, Kolkata Benches Pa g e | 4