G.K. Choksi & Company vs Commissioner Of Income Tax, Gujarat

The Supreme Court upheld the High Court's decision affirming the Income Tax Appellate Tribunal's ruling that a Chartered Accountant's firm is not entitled to initial depreciation under Section 32(1)(iv) of the Income Tax Act, 1961. The Court clarified that the provision applies only to entities carrying on 'business' and not to professional firms. The judgment distinguished the case from Barendra Prasad Ray v. Income Tax Officer, 1981, emphasizing that the latter's applicability was limited to its specific facts.