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TMI Blog1983 (9) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, poses this question: " Whether, on the facts and in the circumstances of the case, the sum of Rs. 2,57,314 was the taxable income of the assessee ? " The year of assessment concerned is 1964-65 for which the previous year ended on September 30, 1963. The Government of India had formulated a scheme known as the " Special Export Promotion Scheme for Engineering Goods " effective from A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn the contention. The assessee went up to the Tribunal and urged that the import entitlements received by it were fortuitous and non-recurring in nature. The business of the assessee was not to acquire and sell, import entitlements and, therefore, the sale of the import entitlements by the assessee was not a business transaction. The receipt of the said sum was of a casual and nonrecurring nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were exempt being of a casual and non-recurring nature. The court held that the import entitlements were obtained by the assessee directly in the course of its business and the value of the same constituted the profits and gains of the business of the assessee. The amounts realised by the assessee by the sale of the import entitlements were profits of the assessee in its business and were neithe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h licences could not give rise to any capital gains. It will be seen that the judgment in the case of Metal Rolling Works Pvt. Ltd. [1983] 142 ITR 170 (Bom), squarely covers the point before us. The decision in Modiram Laxmandas' case, [1983] 142 ITR 702 (Bom), is on a somewhat different point, viz., whether the transfer of the quota rights to obtain import licences gives rise to capital gains. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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