TaxTMI 
TaxTMI 
1999 (3) TMI 4
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....4(3) of the Income-tax Act, 1961 in S. O. No. 3210, dated August 8, 1969, issued by the Government, the assessee was not liable to pay additional tax under section 104 of the Income-tax Act, 1961, for any of the assessment years from 1972-73 to 1974-75 ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that, the amounts realised by the assessee from the transfer of its import licences constituted sale proceeds derived by it from its export within the meaning of the Notification S. O. No. 3210, dated August 8, 1969, and, therefore, the assessee would be entitled to enjoy the exemption from the operation of the provisions of section 104 of the Income-tax Act, 1961 ?" As indicate....
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.... class of companies to which the provisions of this section apply from the operation of this section." A notification dated August 8, 1969 (No. S. O. 3210), was issued in exercise of the powers conferred by section 104(3). It reads thus : "In exercise of the powers conferred by sub-section (3) of section 104 of the Income-tax Act, 1961 (43 of 1961), and in partial modification of the Ministry of Finance (Department of Revenue and Insurance) Notification No. S. O. 2007, dated June 6, 1967, the Central Government, being of opinion that it is necessary and expedient in the public interest so to do hereby exempts every Indian company (not being an investment company as defined in clause (ii) of section 109 of that Act) from the operation ....
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....ear credited to the profit and loss account of the company." The assessee had, by a letter dated March 26, 1969, written by the Government of India, Ministry of Commerce, been granted permission to export for the purpose of a barter deal, ferro-silicon manufactured by the Mysore Iron and Steel Works, Bhadravati, up to a value of Rs. 52 lakhs (f.o.b.). Against this value the assessee was permitted to import pesticides as therein enumerated of a total value that did not exceed Rs. 22 lakhs. The assessee was informed that the import licences that would be issued in this regard could be endorsed in favour of actual users on the list of the Director-General, Technical Development. The assessee claimed that it was entitled to the exemption ....
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....t analysed the said notification and held that an assessee would get its benefit only after it exported goods out of India and received the sale proceeds of the exports in India. The receipts from the transfer of import licences by the assessee to actual users in India did not fall within the meaning of the said notification. Admittedly, the import licences had been sold by the assessee in India and the sale proceeds thereof had been realised in India. The profit realised on such sales could not be considered as a part of export sale proceeds. Accordingly, the High Court reversed the Tribunal's conclusion. What is involved in this appeal is the construction of the said notification and, particularly, the provisos thereof. The notificatio....