Hiren Bhandari (CA Practise) (93 Points)
21 November 2012I have a question if 3 person form a partnership firm and made a hospital. They hire doctors and other staff on salary basis. This hospital provide all types of service like rooms, wards, laboratry testing, opd, consultancy etc etc. Is this firm comes under business or profession.
Hiren Bhandari
(CA Practise)
(93 Points)
Replied 21 November 2012
can u give any reference of case or provision???
NITIN
(.)
(96 Points)
Replied 22 November 2012
' The term 'business' as used in the fiscal statute, cannot ordinarily be understood in its etymological sense. 'Business' has been defined in Section 2(4) but not profession, though for fiscal purposes, a distinction is sought to be made in the Act. The definition of 'business' being an, inclusive definition 'and not being exhaustive, is indicative of extension and expansion and not restriction. According to the Shorter Oxford Dictionary, 'business' includes a stated occupation, profession or trade; profession in a wide sense means any calling or occupation by which a person habitually earns his living. Even so, 'trade' is explained as the practice of some occupation, business or profession- habitually carried on. As is not unusual, several jurists and eminent Judges while attempt-Ing to define the limits of one or the other of the words business, profession and trade entered the "labyrinth together but made exits by different paths". The Supreme Court in Narain Swadeshi Weaving Mills v. Commissioner of Excess Profits Tax, , said that the word 'business' connotes some real, substantial and systematic or organised course of activity or conduct with a set purpose. Venkatarama Aiyar, J., speaking for the Court in Mazagaon Dock Ltd. v. Commissioner of Income-tax, explained 'business' as a word of wide import and In fiscal statutes it must be 'construed In a broad rather than a restricted 'sense. Held the Supreme Court in Lakshminarayan Ram Gopal v. Government of Hyderabad. :
Please Check the Above case laws for further query............
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