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TMI Blog1987 (1) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... by the revenue authorities. The assessee, however, claimed that it was entitled to benefit of lower rate of taxation as is applicable to registered firm deriving income from profession. There is no discussion in the order of the ITO but the CIT(A) rejected the above contention of the assesses and held that the assessee derived income from business activities. 3. Shri S.M. Kasbekar, the learned counsel for the assessee, submitted that the assessee carried on " its activities " without employing much capital and had exercised " intellectual skill " in earning its income. The assessee did not purchase, manufacture or sell any commercial commodity. As partners of the assessee had sound knowledge of reputed parties where investment was safe a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying on business and not " profession ". As per the learned Departmental Representative, the decision of the Supreme Court cited by the assessee supported the case of the revenue that assessee did not carry any profession. 4. We have heard the parties and examined the material placed on record and the case law cited before us. In support of the claim apart from the case law, the assessee has filed before us, copy of profit and loss account relevant to the A.Y. 1982-83 where it has shown gross receipt from dalali at Rs. 2,22,277 and net profit credited to partner's account after deducting certain establishment expenses at Rs. 1,65,465. Similar is the position in the A.Y. 1983-84. The assessee firm in both the years comprised of 8 partners. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a firm deriving income from " profession " is also to be kept in view. Divinity, law and medicine are treated learned "professions" since the ancient times. In modern times, persons in several other branches of art, science and humanity because of their specialised study, training and in-depth knowledge of various subjects claim and are treated as learned professionals. It is not necessary that a person to be a professional must be member of some Organisation. We feel it is impossible to lay down any strict legal definition of term " profession ". In some cases attempts have been made to define what broadly be the meaning of expression ' profession '. In Ram Kripal Tripathi's case their Lordships of the Allahabad High Court defined the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal " knowledge. " Skilled intellectual knowledge " require training, study and/or practice for a length of time. Forwarding agent having knowledge of railway forms, Chemists and Compounders possessing some knowledge of medicines, Clerks of Lawyers possessing knowledge of procedure followed by courts, in spite of their more than ordinary knowledge, cannot be called " professionals " because they lack " skilled intellectual knowledge ". They do not know scientist legal basis of matter or procedure. As to what standard or degree of knowledge of subject would qualify as " professional " would depend upon facts and circumstances of each case. The assessee firm of 8 partners maintained an establishment for carrying on its dalali activities in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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