TMI Blog1982 (3) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... 823 on which investment allowance of Rs. 44,706 was claimed. The ITO referred to the terms of section 32A(2), and held that the X-ray machine does not fulfil any of the conditions prescribed therein. Accordingly, he denied investment allowance to the assessee. It might be mentioned that the ITO has not discussed in detail as to how the assessee was disentitled to the claim of investment allowance. The AAC went into the matter at great length. He referred to the decision of the Madras High Court in CIT v. Dr. V.K. Ramachandran [1981] 18 ITR 727. That was a case of a medical practitioner who had installed an X-ray machine. The claim for development rebate was allowed by the Tribunal and its decision was confirmed by the High Court on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying on was a profession. The word "profession" carried a connotation entirely different from that of business. As the assessee was a professional, the learned departmental representative submitted that investment allowance was not allowable to the assessee. The learned counsel for the assessee, on the other hand, relied upon the order of the AAC and in particular on the decision of the Madras High Court in the case of V.K. Ramachandran. 3. We are afraid that the interpretation sought to be placed by the revenue on the provisions of section 32A(2) is too narrow to merit acceptance. The assessee's claim actually falls under section 32A(2)(b). The section is reproduced below : "(1) In respect of a ship or an aircraft or machinery or plant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first question is concerned the answer is clearly given by the Madras High Court in the case of V.K. Ramachandran. Even if it is presumed that the assessee is a professional, his activities are tinged with a commercial character. He has to operate the X-ray machine and develop the films. Although these may be professional activities, they are essentially of a commercial nature. The professional qualifications which the assessee has do not in any way change the character of the commercial activity he is carrying on. We have, therefore, to hold that the assessee is carrying on a commercial activity. As held by the AAC, it was not necessary that manufacture or production need be carried on only in a large factory complex. 5. It now remains ..... X X X X Extracts X X X X X X X X Extracts X X X X
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