IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX REFERENCE NO. 540 OF 1998 INCOME TAX REFERENCE NO. 540 OF 1998 INCOME TAX REFERENCE NO. 540 OF 1998 The Commissioner of Income-tax, Bombay City-IV, Bombay. ...Applicant V/s. M/s.Lallubhai Nagardas & Sons. ...Respondent Mr.Ashok Katangale for Applicant. None for Respondent. CORAM : CORAM : CORAM : V.C. DAGA AND V.C. DAGA AND V.C. DAGA AND A.S. AGUIAR, JJ. A.S. AGUIAR, JJ. A.S. AGUIAR, JJ. DATED : JULY 1, 2005. DATED : JULY 1, 2005. DATED : JULY 1, 2005. P.C. :- P.C. :- P.C. :- . By this reference under Section 256(1) of the Income-tax Act, 1961, the Income Tax Appellate Tribunal has referred the following question of law for the opinion of this Court :- "Whether, on the facts and circumstances of the case, the Tribunal was right in treating the firm of M/s.Lallubhai Nagardas & Sons as professional firm when it is carrying on the business of stock and share brokerage, the activities of which constitute business income?" - 2 - 2. Learned Counsel for the Revenue fairly states that the above question has already been answered by the Division Bench of this Court in the case of Commissioner Commissioner Commissioner of Income-Tax V/s. Lallubhai Nagardas and Sons reported of Income-Tax V/s. Lallubhai Nagardas and Sons reported of Income-Tax V/s. Lallubhai Nagardas and Sons reported in (1993) 204 ITR 93 in (1993) 204 ITR 93 in (1993) 204 ITR 93 in the negative i.e. in favour of the revenue and against the assessee. 3. In this view of the matter, the reference stands answered in terms of the Judgment referred to hereinabove in favour of the revenue and against the assessee. (A.S. AGUIAR, J.) (V.C. DAGA, J.) (A.S. AGUIAR, J.) (V.C. DAGA, J.) (A.S. AGUIAR, J.) (V.C. DAGA, J.)