Clearing and forwarding activity is not a professional firm for tax purposes, as it lacks specialised intellectual skill.

A clearing and forwarding agent was held not to be a professional firm for income-tax purposes because its work is limited to documentation and facilitating clearance of goods, rather than a profession based on intellectual attainments, specialised skill, or higher learning. The court followed its earlier binding decision in the same assessee's case and the Supreme Court authority relied on there. The question was answered in favour of the revenue and against the assessee.

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Issues: Whether a clearing and forwarding agent can be treated as a professional firm for income-tax purposes.

Analysis: The issue was controlled by the earlier decision involving the same assessee and by the principle that clearing and forwarding work consists of attending to documentation and facilitating clearance of goods. Such activity is not a profession founded on intellectual attainments, specialised skill, or higher learning. The court followed the earlier binding reasoning and the Supreme Court decision relied upon therein.

Conclusion: A clearing and forwarding agent is not a professional firm; the question was answered in favour of the revenue and against the assessee.

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