1985 (3) TMI 39

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....n this application under section 256(2) of the Income-tax Act, 1961, seeks a direction from this court to the Tribunal to refer the following three questions for the opinion of this court : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the premium received on the sale of import entitlements is taxable under section 28(iv) of the Income-t....

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....ficer included the said amount as part of the assessee's income treating it as a revenue or business receipt. This was challenged by the assessee before the Commissioner of Income-tax (Appeals) contending that the sale proceeds of the import entitlement should be taken to be a capital receipt and not as a revenue receipt. This contention was rejected by the Commissioner of Income-tax (Appeals) on ....

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....tative ruling of this court. However, in view of the decision of the Bombay High Court with which we respectfully agree, we are not in a position to say that the question sought to be referred is a referable one in the circumstances of this case. It is not in dispute that the assessee in view of its export performance has got import entitlement. If the assessee had exploited the import entitlement....

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....70 at 173. It is unnecessary to refer to the said decision in detail and it is sufficient to refer to the following observations in that case which contains the reason for holding that the sale of import entitlement must be regarded as the profits of the assessee in its business: " Now, in the present case, the facts found by the Tribunal clearly show and this is not disputed by either side tha....