COMMISSIONER OF INCOME TAX Vs. PRAKASH NARAIN

JUDGEMENT

(1.) THE Tribunal, Jaipur Bench, Jaipur, has referred the following question of law arising out of its order, dt. 27th June, 1980, in respect of the asst. year 1977 78 under S. 256(1) of the IT Act, 1961 :

(2.) THE brief facts of the case are that the assessee derived income from brokerage and claimed it to be professional income in accordance with Sub paragraph II of Paragraph C of the Finance Act, 1977. The ITO found that income derived is from business and not from profession as no special skill was acquired and, therefore, it cannot be considered to be income from profession. In appeal before the CIT (A) also it was considered that profession involves the idea of an occupation requiring purely intellectual skill or manual skill on the basis of some special learning and accordingly the appeal of the assessee was dismissed. The Tribunal in the second appeal found that profession involves the idea of an occupation requiring either purely intellectual skill or any manual skill and, therefore, brokerage was considered to be a "profession" and not a "business". The Tribunal took into consideration the fact that brokerage was derived by personal exertion without any monetary investment and on that basis the income was considered to be as that from profession.

(3.) IN view of the decision of this Court referred to above, the present reference is also answered in favour of the Department and against the assessee. There is no order as to costs.