05 September 2008
A person neither a CA nor a lawyer not holding any professional qualification but filing and preparing IT returns and gross is more than 10L. If tax audit is applicable? If he will be treated as professional?
06 September 2008
If a person carries on a vocation, exercising his personal knowledge and skill, he will be a professional and qualification in academics does not matter.
Intellectual/manual skill must be involved - Profession involves occupation requiring purely intellectual or manual skill - CIT v. Manmohan Das [1966] 59 ITR 699 (SC).
‘Profession’ is associated with intellectual/technical exercises based on learning/service - A profession is normally associated with the exercise of intellectual or technical equipment resulting from learning or service - CIT v. Bhagwan Broker Agency [1993] 70 Taxman 453 (Raj.).
Clearing and forwarding agency is not ‘profession’ - The activity of clearing, forwarding and shipping agents does not amount to a “profession” - CIT v. Jivanlal Lalloobhai & Co. [1994] 206 ITR 548 (Bom.).
Illustrative activities which constitute ‘profession’ - The word ‘profession’ now has a broader and more comprehensive meaning that formerly accorded to it, and its signification now extends far beyond the well-known classical professions of earlier days as the applications of science and learning are extended to other departments of affairs, other vocations, etc. The various other activities which have also now come to be termed as profession are enumerated in Corpus Juris Secundum (Vol. 72, p. 1219). These include, accountants, architects, chemists, editors, engineers, etc. The above enumeration is followed by list of persons who have been held not to be engaged in the practice of a profession. This list includes beauty culturists, brokers, insurance agents, undertakers and embalmers and various others. ‘Profession’ has to be distinguished even from ‘occupation’ which tantamounts to ‘business’, viz., an occupation which substantially the arrangement for sale of commodities - CIT v. Lallubhai Nagardas & Sons [1993] 204 ITR 93 (Bom.).
Stock-broking is not a profession - A stock broker cannot be said to be engaged in the practice of a profession. The real job of a stock broker is to make arrangements for sale of the shares or securities of others. Such activity clearly falls within the expression ‘business’ and not ‘profession’ - CIT v. Lallubhai Nagardas & Sons [1993] 204 ITR 93 (Bom.).
Politics is a profession - Politics is a profession or occupation - CET v. P.V.G. Raju [1975] 101 ITR 465 (SC).
Treasurership is not ‘profession’ - Occupation of a treasurer is not one of the recognised professions, nor can it be said that it partakes of the character of business or trade. Profession involves occupation requiring purely intellectual or manual skill - CIT v. Manmohan Das [1966] 59 ITR 699 (SC).
Betting on horses is not a profession or vocation - Betting on horses cannot constitute a profession or vocation - Janab A. Syed Jalal Sahib v. CIT [1960] 39 ITR 660 (Mad.
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