1983 (9) TMI 59

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....vered by BHARUCHA J.-This reference made at the instance of the assessee, poses this question: " Whether, on the facts and in the circumstances of the case, the sum of Rs. 2,57,314 was the taxable income of the assessee ? " The year of assessment concerned is 1964-65 for which the previous year ended on September 30, 1963. The Government of India had formulated a scheme known as the " Spe....

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....the said sum should be treated as a casual receipt. The AAC turned down the contention. The assessee went up to the Tribunal and urged that the import entitlements received by it were fortuitous and non-recurring in nature. The business of the assessee was not to acquire and sell, import entitlements and, therefore, the sale of the import entitlements by the assessee was not a business transaction....

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....a dealer in import entitlements and, alternatively, that the receipts were exempt being of a casual and non-recurring nature. The court held that the import entitlements were obtained by the assessee directly in the course of its business and the value of the same constituted the profits and gains of the business of the assessee. The amounts realised by the assessee by the sale of the import en....