JUDGMENT
S. Sankarasubban, J.
This income-tax reference is at the instance of the revenue. Theuestion of law referred is as follows :
“Whether, on the facts and circumstances of the case, the Tribunal is right in law and fact 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 hospital comes within the term welfare centre as appearing in Appendix-I, Part I(2) of the Income Tax Rules, 1962 ?”
The assessee is a partnership firm, running a hospital and nursing home atuilon. In the income-tax assessment for the year 1988-89, the assessee was allowed depreciation on furniture and fittings at 15 per cent. The Commissioner later passed an order under section 263 of the Income Tax Act on the view that granting depreciation at 15 per cent was not in order and that the correct rate of depreciation was 10 per cent only. Accordingly, he directed the assessing officer to revise the assessment to restrict the allowance of depreciation at 10 per cent. The assessee took up the matter in appeal before the Tribunal. The Tribunal held as follows :
“As per Appendix-I, Part I(2) of the Income Tax Rules, depreciation at the rate of 15 per cent is allowable on furniture and fittings used in hotels, restaurants, schools, colleges, and other educational institutions, welfare centres, etc. According to the assessee, a hospital is a welfare centre and so in respect of the furniture and fittings used in the hospital, depreciation is allowable at the rate of 15 per cent. The expression welfare centre is not defined in the Income Tax Act or the Rules. Hence, we have to give to the term welfare centre the meaning as commonly understood. If we attribute to the term welfare the meaning of enjoyment of health, improving the conditions of living as appearing in the dictionary, it is not difficult to see that a hospitalualifies as a welfare centre.”
Thus, the Tribunal held that the hospital is a welfare centre and hence is entitled to depreciation at 15 per cent.
Under Appendix-I, Part I(1), the rate applicable to furniture and fittings not covered by sub-item (2) is 10 per cent. For item (2), furniture and fittings used in hotels, restaurants and boarding houses ; schools, colleges 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 centre for the well-being of the community. Hence, a hospital will not come under item (2). If that be so, only 10 per cent depreciation is available.
Hence, we answer theuestion in the negative and against the assessee.