2004 (12) TMI 16

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..... 58 did not partake of the character of 'income' as envisaged under the Income-tax Act, 1961, and was, accordingly, liable to be excluded from the computation of 'taxable income' in the hands of the assessee - So far as the question as to whether the amount of cash incentive, duty drawback and premium entitlement received by the applicant can be included in the "export turnover" and deduction under .....

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..... ections' under the Income-tax Act, 1961, the Tribunal was legally correct in holding that the 'cash incentive' amounting to Rs. 7,45,258 constituted taxable income in the hands of the assessee? (II) Whether, on the basis of the material and evidence on record and an a true and correct interpretation of the same the Tribunal should not have held that the sum of Rs. 7,45,258 did not partake of the .....

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..... ch in the assessment? (V) Whether in case the answer to question No. (IV) is in the negative and against the assessee, on a harmonious construction of the relevant provisions of the Act, the Tribunal should not have held that the sum of Rs. 42,999 (Rs. 23,929 + Rs. 19,070) was liable to be included in the export turnover of the assessee so as to entitle it to claim due deduction under section 80 .....

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..... Mahajan, learned standing counsel for the Revenue. We find that by the Finance Act, 1990, clauses (iiib) and (iiic) are inserted in section 28 of the Act with effect from April 1, 1967, and April 1, 1972, which provided that cash assistance (by whatever name called) and duty drawback received or receivable by any person against exports under any scheme of the Government of India shall be chargea .....

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..... vernment to the applicant under the "export promotion policy" of the Government of India and therefore it will not form part of the export turnover and deduction under section 80HHC is not available on such portion of the income. In view of the foregoing discussions, we answer the questions referred to us in the negative, i.e., in favour of the Revenue and against the assessee. However, there sh .....

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