Amounts expended by an advocate for bypass surgery of his heart not allowable as expense: Delhi High Court

Matter: Shanti Bhushan v. CIT, ITR No. 230/1994, decided on 31.05.2011

Assessment Year: 1982-83

Relevant Facts:

1. The assessee filed a revised return in which he claimed expenses to the extent of Rs. 1,74,000/- for coronary surgery performed on him in Houston, USA.

2. The assessee claimed that the human heart is a plant and the expenses should be deducted as expenses u/s 31 of the Income Tax Act, 1961.

3. The AO rejected the claim of the assessee that the expenses are allowable u/s 31 or 37. The CIT (A) and the Tribunal rejected the claims of the assessee.

Question of law made under a reference:

1. Whether, on all facts and circumstances of the case, the expenses incurred by the assessee on coronary by-pass operation should have been allowed as a allowable deduction either under Section 31 or Section 37 of the I. T. Act, 1961?

Dismissing the appeal of the Assessee, the Hon’ble Court held that:

1. It is important that in order to claim deduction for expenses incurred in the repair of the plant that the same be reflected in the balance sheet of the assessee. The heart was not a part of the balance sheet.

2. A heart is not the ‘tool’ for an advocates business and therefore, it is not a plant u/s 31 of the Income Tax Act, 1961.

3. The amount used for the surgery is not used wholly and exclusively for the purposes of the business.

The decision is available here.