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Section 28(i) of the Income-tax A ct, 1961 - Business income - Whether amount received by assessee-company on sale of import entitlements, obtained by it as an exporter under export promotion scheme of government of India constituted its business income - Held, yes Facts The assessee-company, a registered exporter under the 'Special Export Promotion Scheme for Engineering Goods', obtained certain import entitlements under the scheme and disposed of these for a certain sum which it claimed to be a capital receipt and, hence, not taxable. The ITO, however, rejected this plea and taxed the same. The AAC rejected the assessee's claim that it was a casual receipt and upheld the ITO's order. The Tribunal turned down the assessee's claim that the import entitlements were fortuitous and non-recurring in nature and confirmed the order of the AAC. On reference: Held The matter stood concluded by the of this High Court in the case of Metal Rolling Works (P.) Ltd. v. CIT [1983] 142 ITR 170, wherein, on similar facts, the Court held that the import entitlements were obtained by the assessee directly in the course of its business, and the value of the same constituted the profits and gains of its business and could not be treated either as capital receipts or receipts of a casual or non-recurring nature. In the instant case also, the sale proceeds of the import entitlements were to be treated as the assessee's taxable income. Case review Metal Rolling Works (P.) Ltd. v. CIT [1983] 142 ITR 170 (Bom.) followed. Cases referred to Metal Rolling Works (P.) Ltd. v. CIT [1983] 142 ITR 170 (Bom.) and CIT v. Modiram Laxmandas (P.) Ltd. [1983] 142 ITR 702 (Bom.). IT REFERENCE NO. 88 OF 1974. T.U. Khatri for the Applicant. R.J. Joshi, H.K. Sajnani and Miss S.G. Shah for the Respondent. Judgment Bharucha, J. - This referencel, made at the instance of the assessee, poses this question: "Whether, on the facts and in the circumstances of the case, the sum of Rs. 2,57,314 was the taxable income of the assessee?" The year of the assessment concerned is 1964-65 for which the previous year ended on 30-9-1963. The Government of India had formulated a scheme known as the 'Special Export…

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