CIT Vs. INTERNATIONAL CLEARING AND SHIPPING AGENCY

JUDGEMENT

(1.) Whether in the facts and circumstances of the case the Tribunal was right in holding that a clearing and forwarding agent is a professional firm is the question of law framed by the revenue in this appeal, which is filed against the order of the Income-tax Appellate Tribunal, dated 27-2-2003 passed in ITA No. 504 (Mad.) 95 in respect of the assessment year 1991-92.

(2.) The necessary facts for the disposal of the appeal is as follows:- The assessee is engaged in the business of clearing and forwarding. For the assessment year 1991-92, the assessee filed its return declaring a total income of Rs. 51,40,170 claiming its status as a professional firm. The assessing officer held that clearing and forwarding activities is not a profession, but a business, and brought the assessee's income to tax accordingly. The assessee filed an appeal to the Commissioner of Income-tax (Appeals), who allowed the appeal following the order of the Income-tax Appellate Tribunal in the assessee's own case for the earlier year. The revenue took up the matter in second appeal to the Tribunal, which dismissed the appeal by following its earlier order. Hence the present appeal with the question of law as referred to above.

(3.) We have heard the argument of the learned Counsel for the revenue and perused the materials available on record.