Law: Income Tax Act, 1922

Section: 2(4), 10(2) (vib), 66

Income-tax---Development rebate-Medical equipment-Doctor running nursing home-Whether carries on business-Medical equipment -Whether entitled to development rebate-Reference-Question whether an activity is a business or not-Whether question of law-"Business", meaning of-Indian Income-tax Act, 1922, Ss. 2(4), 10(2) (vib) & 66. The assessee, a doctor by profession, was maintaining and running a nursing home in which he installed certain medical equipment and claimed development rebate on the value thereof. The Department and the Tribunal negatived the claim on the ground that the assessee's running a nursing home was part of his profession and could not be classified as a business. On a reference; Held: The carrying on of the nursing home by the assessee as part of his profession was of a commercial nature and the combined activities of the assessee constituted "business" and the assessee was entitled to the development rebate. If an assessee, who is a professional and an expert, con temporaneously carries on a trade which is annexed to the exercise of such a profession and if, by doing so, he can take advantage of a provision In the fiscal Act by claiming an allowance or rebate, and if such a claim carries a lighter burden of tax, then he has the right to take advantage of the same. The definition of "business", being an Inclusive definition and not being exhaustive, is indicative of extension and expansion and not restriction. [Case-law referred.]                                                                                                                JUDGMENT RAMAPRASADA RAO, J.---The assessee is a doctor and a leading surgeon who is practising his profession at Madurai and also maintaining and running a nursing home. In the year of account he installed a combination sterilizer at a cost of Rs. 16,090 and an equipment called the major surgical…