703/CBDT.

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....r reason. At the time of discontinuance, in almost all cases of professional people, there is some outstanding fees for the service rendered by them in the earlier years. 2. Section 176(4) of Income-tax Act, 1961 provides that where any profession is discontinued in any year on account of cessation of the profession by, or the retirement or death of the person carrying on the profession, any sum ....

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....e date of discontinuance. 4. With a view to ensuring that professional receipts received after the discontinuance of profession is brought to tax, Board have decided that in such case, the ITO must invoke the provisions of Sec.133(6) for calling for the information regarding all outstanding fees in the year in which profession is discontinued. This will enable them to keep track of the receipts i....