03 July 2008
Anybody who carries on a profession is a profession. The definition of a profession is carrying on a vocation based on his personal skill.
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.).
03 July 2008
With due respect to Mr.Srinivasraghvan and Mr. Sampat jain, I feel that both were completely missed the point raised by Ejaz.
I hereunder make an attempt to answer his question,
In general qualifications like MBA,LLB,MBBS,CAs,CSs,ICWAIs,Btech, Mtech Etc are known as professional qualifications and the people holding these qualification are called professionals.Since they are highly skilled and knowledgeable individuals by the virtue of holding such degrees,they set the bench mark for conducting the activites relevant to thier field. This eventually became the generally accepted ultimate standard for performing the job and every body expect anybody performing these job to meet these professional standards. These led to even people without professional qualification but performing the job by meeting these standards are known in thier circles as prefessional people.And companies insist thier employees to conduct themselves like a professional and perform the job professionaly.However these are mere occupation often called a work or a job.
There is a set of pre-existing conditions that distinguish a profession from an occupation. Unlike occupations all professions:
1.require a specilised field of knowledge and specific skill set,
2.are fields that have restrictions to entry. These barriers are normally in the form of exams that have to be passed,
3.have a regulatory body which establishes a code of ethics for the profession. If members violate this code of conduct they stand the risk of being removed from the profession,
4.have rules based around responsiblities members must have towards their clients (eg.doctors must maintain client confidentiality) towards maintaining the integrity of thier profession(eg.accountants are expected not to engage in creative or false accounting practices) and towards society (eg. lawyers convicted of serious crimes are automatically disbarred),
5.require members to swear an oath to uphold thier ethics and code of conduct and
6.have certification requirements thereby restricting ordinary members from practicing (Eg in India only individuals holding a CA qualification can be appointed as auditors of an organisation)
Interestingly MBA, though known as a professional qualification, it does not meet any of the above points. It may be true that if conducting business is a specilized field of knowledge with pre-existing standards then it will meet the first point.
So in my opinion a person who conduct himself and performing his job professionally must be known as a professional regardless of his qualification.
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