1998 (1) TMI 33 - HC - Income Tax

Summary

The High Court of Delhi rendered a judgment on a reference under section 256(1) of the Income-tax Act, 1961. The question was whether the amount of Rs. 2,72,036 received by the assessee on account of import entitlements was assessable to income-tax as business income. The Tribunal held the amount liable to tax. However, due to retrospective changes in the law introduced by the Finance Act, 1990, the reference was deemed academic as the premium earned by the assessee is now considered taxable income under the head "Profits and gains of business or profession." The reference was returned unanswered.