Export cash incentive taxable as revenue receipt after retrospective income-tax amendments brought it within charge.

Cash incentive received against exports was held taxable as a revenue receipt because retrospective amendments to the Income-tax Act, 1961 inserted clause (iiib) in section 28 and clause (vb) in section 2(24), expressly bringing cash assistance against exports within the charge of income-tax. The Tribunal's view that the receipt was capital in nature did not survive once those amendments were given retrospective effect from 1 April 1967, and the relevant assessment year fell within that amended period. The question was answered in favour of the Revenue and against the assessee.

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Issues: Whether cash incentive received against exports was taxable as a revenue receipt in view of the retrospective amendments to the Income-tax Act, 1961.

Analysis: The reference arose from the assessment year 1982-83. The Tribunal had treated the cash incentive as capital in nature and therefore not taxable. The subsequent amendments introduced by the Finance Act, 1990 inserted clause (iiib) in section 28 and clause (vb) in section 2(24) of the Income-tax Act, 1961, expressly bringing cash assistance received against exports within the charge of income-tax. Those amendments were given retrospective effect from 1 April 1967, and the relevant assessment year fell within the amended period.

Conclusion: The receipt was taxable as a revenue receipt. The question was answered in the negative, in favour of the Revenue and against the assessee.

Ratio Decidendi: A cash incentive received against exports is chargeable to tax as income where retrospective amendments expressly bring such receipts within the ambit of taxable income.

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