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TMI Blog1995 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... . An initial trust fund of Rs. 5,000 was contributed by him. The name of the trust is " Sri Lakshmi Trust ". The beneficiaries of the trust are specified in clause 5 of the document. The trustees, initially appointed, are mentioned in clause 6. Various rights and duties of the trustees necessary for the purpose of carrying out the object of the trust were particularly described in the document. Among others, the trustees were empowered to run a nursing home to render professional service and to carry out such other activities relating thereto. 3. The trustees had accordingly functioned and the nursing home run by them came to acquire a distinction. 4. The impugned assessment pertains to assessment year 1985-86. The year of account termi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are determinate. The trustees are empowered to run a nursing home for the benefit of the beneficiaries. N.V. Shanmugham Co.'s case can have no application as pointed out by the Karnataka High Court in the case of CIT v. K. Shyamaraju (Trustees) [1991] 189 ITR 392. 8. The main plank on which the CIT's order rests is that the income which the nursing home had generated was business income and, therefore, subject to the mischief of section 161(1A). The rejoinder of Dr. Krishna, the learned advocate for the assessee, was that it was professional income. 9. Profits of business and profession are both assessable under section 28. Section 161(1A) has application only to profits and gains of business ; but not of profession. The character ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in para 28 of the judgment in Sodan Singh v. Municipal Committee [1989] 4 SCC (pp. 135-174) to say that " profession means an occupation carried on by a person by virtue of his personal and specialised qualifications, training or skill ". This was in the context of explaining that " occupation has a wide meaning such as any regular work, profession, job, principal activity, employment, business or a calling in which an individual is engaged ". It is clear from the statement itself that " profession " and " business " are different although they may for certain purposes fall within the compass of the " occupation ". 13. When one says professional income, we naturally ask whose professional income ? Dr. Krishna argued that section 161(1A) m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are commercial in nature the centrifuged activity is one of business. 16. The working of a Nursing Home comprises of many activities. Specialists give medical advice or treatment. There are working units such as operation theatre, equipments for conducting tests, providing beds/accommodation to in-patients for all of Which charges are collected. This is easily ascribable to commercial activity. Even if the person who runs the Nursing Home is himself a professionalist it is not possible to segregate the various activities involved in it, select one as the essence, and designate it as professional. There is an organic unity in the working so much so dissection is impossible. Even when the owner of the Nursing Home is himself a doctor an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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