Law: Income Tax Act, 1961

Section: 2,2(24),28

Income-tax---Income---Business income---Export---Law applicable to assessment--¬Effect of insertion of cls. (iii-a), (iii-b) & (iii-c) in S.28 of Indian Income Tax Act, 1961---Cash compensatory support given to exporters is assessable as income from business---Indian Income Tax Act, 1961, Ss.2(24) & 28. In respect of incentives received by exporters, new clauses (iii-a), (iii-b) and (iii-c) have been inserted in section 28 of the Income Tax Act, 1961, to provide that profits on sale of import entitlement licences, cash compensatory support and drawback of duty respectively shall be chargeable to income-tax under the head "Profits and gains of business of profession". These have, further, been included in the definition of the term "income" in clause (24) of section 2. These amendments will take effect retrospectively from the dates from which these incentives were introduced. Hence, the cash compensatory support received by an exporter would be assessable. Jeewanlal (1929) Ltd. v. CIT (1983) 142 ITR 448 (Cal.) ref. JUDGMENT B.R. ARORA, J.---The Income-tax Appellate Tribunal, Jaipur Bench, Jaipur at the instance of the Revenue, under section 256(1) of the Income Tax Act, 1961, has referred the following question of law for the opinion of this Court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in allowing the claim of the assessee holding that cash compensatory receipt cannot be treated as revenue receipt for taxation and thereby in entertaining, additional ground of appeal without affording the Assessing Officer an opportunity to examine the claim before directing to allowing the same?" After the, reference made by the Tribunal, the law on the point has been amended and an Explanatory Note on the provisions of the Finance Act, 1990, was issued modifying the provisions relating to exemption of income from export. Circular No.572 (see (1990) 186 ITR (St.) 81), dated August 3, 1990, issued in this regard reads as under (page 100) "Explanatory notes on the provisions of the Finance Act 1990 Modification of provisions relating to exemption of income from exports.---27. At present exporters are…

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