1988 (7) TMI 47

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....ed in the business of buying and selling timber obtained from the State Government and its agencies and is an income-tax assessee. It has, challenged, in this writ petition, the Press Note dated June 23, 1988, issued by the Minister of Finance, a copy of which is produced as annexure A to the writ petition. By the Finance Act of 1988, section 44AC, which is a special provision for computing pro....

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....ble, is deemed to be the profits and gains of the buyer from that business. Section 206C introduced by the same Finance Act provides for the procedure to collect the said sum from the buyer as specified in the table annexed to section 206C, with reference to each class of goods referred to therein. This has come into force on June 1, 1988. A press note came to be issued by the Finance Minist....

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..... It is, there-fore, argued on this premise, that such collection is wholly illegal and opposed to section 206C and section 2(29C) of the Act, which defines "maximum marginal rate". I am unable to appreciate the argument of Sri Hanumantha Rao. What is deemed to be profits and gains of the petitioner under section 44AC is 15% or 10% of the purchase price depending upon the nature of lease and th....