1989 (7) TMI 152 - AT - Income Tax

Summary

Issues:
1. Whether the income from honorarium should be assessed under the head "Income from Profession" or "Income from Salary."
2. Whether the deduction for conveyance expenses should be allowed in the computation of the assessee's income from honorarium.

Analysis:

1. The Revenue appealed against the AAC's order for the assessment year 1982-83, disputing the classification of the assessee's income from honorarium under the head "Income from Profession" instead of "Income from Salary." The Departmental representative argued that the honorarium received should be taxed as "Income from Salary" and not "Income from Profession." Additionally, the representative contested the allowance of a deduction for conveyance expenses without proper evidence from the assessee to support the claim.

2. The assessee contended that the income in question was derived from professional sources, including honorarium from various hospitals and fees from LIC. The assessee claimed that conveyance expenses were necessary for earning income from the profession and were not limited to fees received from LIC alone. The assessee argued that the conveyance expenses were reasonable and should be deductible against the income from profession and the share of income from a registered firm. The counsel supported the AAC's decision to assess the income from honorarium as "Income from Profession" and to allow the deduction for conveyance expenses.

3. Upon review, the Tribunal agreed with the AAC's findings that the income from honorarium should indeed be assessed as "Income from Profession" due to the absence of an employer-employee relationship. The AAC's order was supported by certificates from hospitals confirming the nature of payments as honorarium. Regarding the deduction for conveyance expenses, the Tribunal concurred with the AAC's direction to allow the expenses to the extent they were not considered personal. The Tribunal found the AAC's decision to be correct and dismissed the Revenue's appeal.

In conclusion, the Tribunal upheld the classification of the assessee's income from honorarium as "Income from Profession" and approved the allowance of conveyance expenses in the computation of income. The appeal filed by the Revenue was consequently dismissed.