M/S.Jai Bharath Tanners vs The Commissioner Of Income-Tax on 31 December, 2002
This Court in another decision in GEORGE
MAIJO & CO. (VIZAG) v. C.I.T. (157 ITR 475), by judgment dated 14.3.1985,
held that the sale of import entitlements received on export would constitute
a revenue receipt and not a capital receipt. As already observed, the
assessing officer has made the order of assessment under section 143(1) of the
Act on 29.3.1989 and when he made the assessment under section 143 (1) of the
Act, two decisions of this Court were holding the field and the order passed
by the assessing officer overlooking the binding decisions of this Court is
plainly erroneous. Though the Commissioner in his order has not given the
citation of the cases decided by this Court, yet, when he referred in his
order that 'there are a number of decisions from the Madras High Court', he
must have meant not only these two decisions earlier referred to, but also
other decisions of this Court taking the same view on this subject. We
therefore hold that the Commissioner was justified in invoking his power of
revision under section 263 of the Act as regards the taxability of receipts by
import entitlements and also from cash compensatory support as business
income.