JUDGEMENT
U.T. Shah, Vice President -
(1.)IN this appeal, the assessee is contesting the action of the I.T. authorities in disallowing the claim for deduction of Rs. 1,29,190 being expenses incurred in connection with an open heart surgery undergone by him in USA.
(2.)The assessee is an individual and is carrying on profession as an actor, that too, as a villain in the film industry. The assessment year is 1982-83 and the relevant previous year ended 31-3-1982.
The facts of the case, as summarised in the statement of facts, sent along with the memo of appeal to the CIT (Appeals) read as under :-
(1) Shri Ajit is reputed for his acting in roles of villain in Hindi feature films. This requires performing of various stunt actions by Shri Ajit. He has to be 100% physically fit to give successful performance in such roles. Thus 100% physical fitness is an essential factor in the profession carried on by Shri Ajit from which he earns professional receipts.
(2) Somewhere in 1978 Shri Ajit started getting complaint of Angina Pectoris and so he was under treatment of Dr. Sudhir Naik of Hyderabad and Dr. A.S. Godbole of Bombay, both well known cardiologists. In May 1981 Shri Ajit was facing lot of difficulties in performing his stunt required for his roles in Hindi Feature Films. He, therefore, underwent a thorough inspection again under Dr. Sudhir Naik, who suggested immediate operation for permanent cure and to safevouch successful performance of the stunts necessary for the roles of villain in films. For this purpose they advised him to proceed to USA for this surgery without further delay. He as well Dr. A.S. Godbole advised that the surgery should be performed by Dr. Cooely in Stulkes Hospital, Houston Texas, USA, where Dr. Sudhir Naik himself was attached years before. In fact Dr. Sudhir Naik made arrangements for admission of Shri Ajit in this hospital. Under this expert medical advice Shri Ajit proceeded to Houston Texas, USA to undergo the said operation. He was accompanied, as an attendant, by his son Shri Zahid Ali Khan as per recommendation of the said Dr. Naik. Foreign exchange of 18,550 US Dollars was allowed by the Exchange Controller Authorities of RBI, Bombay who issued in favour of Shri Ajit Permit Numbers EC/BY/ TR/M/1456/19/80/81 of 1-6-1981 for the US $16050 and Number EC/BY/ TR/M/1491/19/80/81 of 9-6-1981 for US $2500 (copies enclosed). Shri Ajit went to Houston on 9th June, 1981 and returned to India on 1-9-1981, after successful open heart surgery performed by Dr. P. Cooely at the hospital mentioned above. Shri Ajit submitted his report of this medical visit to overseas country Texas USA to the Assistant Controller, Exchange Controller Department, Reserve Bank of India, Bombay on 17th September, 1981. The expenses account in detail has been given in this report. A copy of which is enclosed for your ready reference. Out of the sanctioned US $ 18,500 Shri Ajit returned 3,000 US $ to M/s. Thomas Cook India Ltd. (copy of certificate from them is enclosed) from whom he had purchased 18,550 US $ originally. In the details submitted for assessment year 1982-83 the aforesaid medical expenses have been claimed as under :-
JUDGEMENT_11081_TLIT0_19910.htm
This claim is made under the provisions of Section 37(1) of the Income-tax Act, 1961 as the expenditure of Rs. 1,29,190 relates exclusively for the purpose of the profession of film act, specially the roles of villain by Shri Ajit.
(3.)ON the aforesaid facts, the assessee claimed deduction of Rs. 1,29,190 both, in the return, as well as at the time of assessment proceedings on the grounds that the said expenditure was incurred fully and exclusively for the purposes of the profession carried on by him, that after the operation he was 100% fit and could successfully act as a villain in number of films and that the ratio laid down in the case of Prince v. Mapp (Inspector of Taxes) [1971] 79 ITR 671 (Ch. D.) clearly supports his claim.
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