Business or profession
The word business is defined in section 2 (13) to include any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture.
The expression business though extensively used in tax-statues, is a word of indefinite import. in tax statutes,is a word of indefinite import. in tax statutes, it is used in the sense of occupation or profession which occupies the time, attention and labour of a person, normally with the object of making profit. to regard an activity as a business, there must be a course of dealings, either actually continued or contemplated to be continued with a profit motive and not for sport or pleasure.
The word business has a wider content than the word trade, commerce or manufacture. in Lakshminarayan Ram Gopal V Government of Hyderabad (1954) 25 ITR 449 (SC) the Supreme Court pointed out that the activities which constitute carrying on of business need not necessarily consist of activities by way or trade, commerce or manufacture or activities in the exercise of a profession or vocation. they may even consist of rendering services to others of a variegated character. the definition of business being an inclusive definition and not being exhaustive, is indicative of extension and expansion and not restriction.
The word “business” is one of wide import and it means activity carried on continuously and systematically by a person by the application of his labour or skill with a view to earning an income. the expression business does not necessarily mean trade or manufacture only.
The term ‘business’ is defined in section 2(13) while ‘profession’ is defined in section 2(36). This section does not state what profession means; it only states that profession will include vocation.
The word profession implies professed attainment in special knowledge as distinguished from mere skill. A profession involves labour, skill, education and special knowledge and implies a vocation requiring higher education and learning, intellectual skill as distinguished from one that used an occupation for the production or sale of commodities…”.
profession involves occupation requiring purely intellectual or manual skill. (CIT v Manmohan Das(1996) 59 ITR 699 (SC))
A vocation, as normally understood, is a calling in which a person passes his life. it may even be stated to be a way of living or a sphere of activity for which one has a special fitness, though it is not necessary that the activity should be indulged in for purpose of livelihood.