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TMI Blog1984 (8) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... siness management consultant who specialised in the promotion of small-scale industries and on account of this knowledge, the assessee was appointed by the Government of Maharashtra as Managing Director of Maharashtra Minerals Corporation Ltd. and besides, was a consultant to a number of companies for whom he was a retainer. Among the claims before the ITO, in the course of the assessment proceedings, was the claim of deduction of payments to the National Institute of Motivational Institutional Development (the National Institute), amounting to Rs. 12,294 for the assessment year 1979-80 and Rs. 14,800 for the assessment year 1980-81, in working out the income from profession. It was pointed out to the ITO that the National Institute was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Subramanian, submitted to us that while sections 28, 30, 31, 32, etc., of the Act, speak of both business or profession, clause (iii) of sub-section (1) of section 35 speaks of only business and since the assessee was not carrying on any business but was carrying on a profession only, the provisions of section 35(1)(iii) will not be applicable to the assessee's case. On this basis, he vehemently argued before us that the claim of deduction of payments to the National Institute was not covered by the provisions of section 35(1)(iii) and was wrongly allowed by the AAC in working out the income from profession. 4. On the other hand, the assessee's learned counsel, Shri Tambe, submitted that the word 'business' includes 'profession'. Referenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of profits and gains of business or profession. Section 2(13) of the Act defines business to include any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. There is a separate definition of 'profession' in section 2(36), whereby profession includes vocation. Even in sections 30, 31 and 32, the sections speak of both 'business' or 'profession'. There are some other sections, e.g., section 32A, section 33, section 33A, section 33B, etc., where these sections speak of business only. This clearly shows the intention of the Legislature to draw a distinction between business and profession. Viewed in this context, the provisions of section 35(1)(iii) under consideration in the present app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions of section 35(1)(iii). The assessee's claim of deduction, on this ground, therefore, was not correct. 7. This, however, takes us to the alternative ground that the payments made to the National Institute were laid out wholly and exclusively for the purpose of profession and are, therefore, an admissible deduction in working out the income from profession. The Hon'ble Supreme Court in the case of CIT v. Ciba of India Ltd. [1968] 69 ITR 692 has laid down that even if an expenditure was not admissible as expenditure laid out on scientific research, it could be allowed as business expenditure laid out wholly and exclusively for the purposes of the business. Viewed in this context, section 37 of the Act reads as under : " Any expend ..... X X X X Extracts X X X X X X X X Extracts X X X X
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