Legal position with respect to Cash Compensatory Support given to exporters. - Income Tax - 1690/CBDT

INSTRUCTION NO. 1690/CBDT Dated: November 2, 1986 The Income Tax Appellate Tribunal Delhi Bench had in the case of Gedare Tools Pvt. Ltd. held Cash Compensatory Support (CCS) given to exporters as not taxable. In a subsequent decision, the Income Tax Appellate Tribunal A Bench, Delhi in the case of M/s Reliance International Corporation Ltd. 928 (Del)/1983 has not agreed to the view taken in the case of Gedare Tools Pvt. Ltd. and has held the Cash Compensatory Support given to exporters taxable as a trading receipt. In giving this decision in favour of Revenue ITAT (A) Bench Delhi has relied on the judgement of Calcutta High Court (1983) 142 ITA, 448 ITR 448, which is the only direct judgement of a High Court on this issue. The above legal position may please be brought to the notice of all officers working in your Charge.