2000 (8) TMI 41

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....In this appeal under section 260A of the Incometax Act, 1961 (in short "the Act"), the only question raised by the Revenue is whether the Income-tax Appellate Tribunal, Delhi Bench-A (in short "the Tribunal"), was justified in holding that the amount received by the assessee on account of forfeiture of advance guarantee commission is business income and not income from other sources, in terms of s....

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.... income from other sources. At the cost of repetition, we may indicate that the reason for coming to the conclusion that the income was not from business but was from other sources was not indicated in the order of assessment. The matter was carried in appeal before the Commissioner of Income-tax (Appeals) (in short "the CIT(A)"), who upheld the actions of the Assessing Officer holding that on con....

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....essee, on the other hand, submitted that the provision itself is very clear to the effect that profits on sale of a licence granted under the Imports (Control) Order, 1955, made under the Imports and Exports (Control) Act, 1947, are part of the business income. It would be appropriate to quote section 28(iiia). The said provision reads as follows : "28. Profits and gains of business or profe....

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.... of section 80HHC vis-a-vis profits on sales of licence was in consideration. We find that section 28(iiia), having retrospective effect from April 1, 1962, as quoted above, makes the position clear that the profits on sale of a licence granted under the Import (Control) Order, 1955, made under the Imports and Exports (Control) Act, 1947, are chargeable to income-tax under the head "Profits and ga....