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TMI Blog2013 (12) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... 4J apply in the case of the assessee would depend upon the finding of the fact whether the assessee is in profession or in business - The issue was restored for fresh adjudication. - ITA No. 1420/Mum/2012 - - - Dated:- 22-10-2013 - Shri H. L. Karwa And Shri N. K. Billaiya, AM,JJ. For the Petitioner : Mr. Shishir Srivastava For the Respondent : Mr. S. S. Phadkar ORDER Per N. K. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noticed that the auditors have qualified their report in respect of these payments of professional fees and further noticed that the disallowance has already been made while preparing the computation of the total income. 4. Before the CIT(A) the assessee pointed out that it has claimed before the AO that the provisions of Section 194J are not applicable in the case of the assessee for the year u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lakhs to Rs.21.03 lakhs and claimed that the turnover of the assessee exceeded Rs.40 lakhs for the first time during the year under consideration and, therefore, the provisions of Section 194J read with its Proviso do not apply in the case of the assessee. After considering the detailed submissions made by the assessee and the remand report of the AO, the CIT(A) came to the conclusion that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be construed as the first year of tax audit and, therefore, the provisions of Section 194J are very much applicable and the auditors have very rightly disallowed Rs.22,1,000/- in the computation of income. 6. Per Contra, the learned counsel for the assessee argued that the assessee is not in a profession but doing business in the sale of paintings and art works. Therefore, the threshold lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 194J apply in the case of the assessee would depend upon the finding of the fact whether the assessee is in profession or in business ? Therefore, we restore this issue back to the files of the AO. The AO is directed to verify the true nature of assessee's vocation/business/profession and accordingly decide the issue afresh after giving a reasonable opportunity of being heard to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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