Law:

Section:

Section 10(3) of the Income-tax Act, 1961 - Exemption - Casual and non-recurring receipts - During relevant accounting period, assessee-company received a sum of Rs. 7,85,051 representing sale proceeds of import entitlements received under an export promotion scheme - Assessee contended that out of total amount received, Rs. 6,90,051 came to it as windfall and only remaining amount of Rs. 95,000 flowed from its main business and was taxable - Tribunal observed that premium received by assessee was in course of carrying on of business and, therefore, sum of Rs. 6,90,051 was also assessee's income - Whether receipt of Rs. 6,90,051 was of a casual nature so as to be exempt from tax - Held, no Section 28(i) of the Income-tax Act, 1961 - Business income - Assessable as - Whether in view of facts stated under head 'Exemption - Casual and non-recurring receipts', receipt of Rs. 6,90,051 was assessable as assessee's business income - Held, yes Facts During the relevant accounting period, the assessee-company received a sum of Rs. 7,85,051 representing sale proceeds of the import entitlements received under an export promotion scheme. The assessee contended that out of the total amount received Rs. 6,90,051 came to it as windfall and was exempt from tax and that merely the amount of Rs. 95,000, which flowed from its main business was taxable. However, the ITO taxed the entire amount. On appeal, the Tribunal observed that on the basis of the evidence on record it would be clear that the premium received by the assessee was in the course of carrying on of the business and as a result of trading done by the assessee and, therefore, sum of Rs, 6,90,051 was also the assessee's income. On reference: Held In view of the clear finding of the Tribunal that the receipts arose from the main business of the assessee, there could be no doubt that the amount could not be treated as mere windfall or casual income so as to be exempt from tax as claimed by the assessee. It was also significant that the entire amount of Rs. 7,85,051 was impressed with the same characteristic and there was no basis to treat merely a part of it, i.e., Rs. 95,000 alone as income and to treat the remaining…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492