COMMISSIONER OF INCOME TAX Vs. SMARTS P LIMITED

JUDGEMENT

(1.) THESE are two references under S. 256(1) of the INCOME TAX ACT, 1961, made at the instance of the Revenue, arising out of the asst. yrs. 1982 -83 & 1983 -84, seeking the opinion of the High Court on the following question of law:

(2.) THE Finance Act, 1990, has incorporated cl. (iiib) in S. 28 and cl. (vb) in S. 2(24) of the IT Act, 1961, the effect whereof is that cash assistance (by whatever name called) received or receivable by any person against exports under any scheme of the Govt. of India is included in income chargeable to tax under the head "Profits and gains of business or profession". This amendment has been given retrospective effect from 1st April, 1967, and hence would apply to the asst. yrs. 1982 -83 and 1983 -84 also. In view of this amendment it has to be held that the Tribunal was not right in holding that the amount received as cash compensatory support was not taxable income.