COMMISSIONER OF INCOME-TAX VS VAKHARIA & CO., 1998 PTD-BOMBAY-HIGH-COURT-INDIA 1153 (1995)

Income-tax---

----Profession---Business---Brokerage and commission on foreign transaction between scheduled Banks and Exchange Control of Reserve Bank of India-- Not taxable as, professional income---Indian Income Tax Act, 1961.

Held, that income derived by the assessee-firm from brokerage and commission on foreign transactions between scheduled Banks and Exchange Control of Reserve Bank of India was not taxable as professional income.

CIT v. Lallubhai Nagardas & Sons (1993) 204 ITR 93 (Bom.) fol.

T.U. Khatri with J.P. Devadhar instructed by Mrs. S.G. Shah for the Commissioner.

JUDGMENT

DR. B. P. SARAF, J.---By this reference made under section 256(1) of the Income Tax Act, 1961, at the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following question of law for the opinion of this Court:

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that income derived by the assessee firm from brokerage and commission on foreign transactions between scheduled banks and Exchange Control of Reserve Bank of India was taxable as 'professional income'?"

It is stated before us that this case is covered by the ratio of the decision of this Court in CIT v. Lallubhai Nagardas & Sons (1993) 204 ITR 93. Following the same, it is answered in the negative and in favour of the Revenue.

No order as to costs.

M.B.A./1439/FCOrder accordingly.