Samaresh Banerjea, J. - (1.) In the present writ application, the petitioner-company has prayed for, inter alia, a declaration that petitioner No. 1 is an industrial undertaking within the meaning of Section 10(15)(iv)(c) of the Income-tax Act, 1961. Admittedly, petitioner No. 1-company is a Medical Diagnostic Centre. Petitioner No. 1-company purchased a nuclear magnetic resonance scanner, Siemens Magnetom P-8, from Siemens Aktiengesellschaft Bmed, D. 8520, Erlangen, Germany, on a part payment and the balance of the amount is to be paid by the petitioner on supplier's credit for five years. The payment is to carry an interest at the rate of 8.1 per cent. per annum. The said rate of interest of 8.1 per cent. per annum was fixed in consultation with the Government of India, Ministry of Finance, Department of Economic Affairs, New Delhi.
(2.) It is the contention of the petitioner that the interest so payable by petitioner No. 1-company is exempted from income-tax in accordance with the provisions of Sub-clause (iv)(c) of Clause (15) of Section 10 of the Income-tax Act, 1961, and claiming such exemption, the petitioner wrote to the Government of India, Ministry of Finance, Department of Revenue, for approval. The petitioner thereafter was advised to file a formal application on the prescribed form. Accordingly, the petitioner filed the same. On a query made by the Desk Officer, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (Foreign Tax Division), Government of India, the petitioner replied annexing thereto an opinion of a tax consultant opining, inter alia, that such exemption is liable to be granted under the aforesaid provisions of the Income-tax Act, 1961.
(3.) Ultimately, by an order dated March 21, 1995 (annexure-G to the writ petition), such claim of the petitioner for exemption was rejected, inter alia, on the ground that petitioner No. 1-company is a medical diagnostic centre and the same is not processing goods which are sold as such, but the films are to be processed as a tool for making diagnosis and any activity carried on material as a part of prominently professional activity will not convert the same into an industrial activity.;