1998 (1) TMI 54 - HC - Income Tax

Summary

The High Court of Delhi delivered a judgment on a reference under section 256(1) of the Income-tax Act, 1961, regarding the tax liability of a premium earned on the transfer of import entitlements. The Tribunal held the premium earned by the assessee as liable to tax. However, the reference was deemed academic due to retrospective changes in the law introduced by the Finance Act, 1990, making the premium earned taxable as "income" under the head "Profits and gains of business or profession." Consequently, the reference was returned unanswered.