| Case ID |
0ac38cc9-f18e-4af9-b8b2-79595c058132 |
| Body |
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| Case Number |
Income-tax Reference No.74 of 1984 |
| Decision Date |
Jan 09, 1998 |
| Hearing Date |
|
| Decision |
The court held that the premium earned by Raunaq International on the transfer of import entitlements is liable to tax under the Income Tax Act, 1961. The Finance Act of 1990 introduced amendments that retrospectively included such premiums within the definition of income, thereby rendering the prior arguments against taxation moot. The reference was considered academic due to these changes in law, and thus the court returned it unanswered. |
| Summary |
In the case of Raunaq International vs. Commissioner of Income Tax, the Delhi High Court examined whether a premium of Rs. 4,75,322 earned by Raunaq International on the transfer of import entitlements constituted taxable income under the Income Tax Act, 1961. The court noted that the Finance Act of 1990 amended the Income Tax Act to include such premiums in the definition of income, effective retrospectively from April 1, 1962. The court concluded that the premium earned was indeed taxable under the head 'Profits and gains of business or profession'. This case underscores the importance of understanding amendments in tax law and their retrospective implications, particularly for businesses engaged in import activities. These developments are crucial for tax planning and compliance, making this case relevant for taxpayers and tax practitioners alike. |
| Court |
Delhi High Court
|
| Entities Involved |
Commissioner of Income Tax,
Raunaq International
|
| Judges |
R. C. Lahoti,
Dalveer Bhandari
|
| Lawyers |
R. D. Jolly,
Ms. Prem Lata Barisal,
Sanjeev Khanna,
Jay
|
| Petitioners |
Raunaq International
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1999 SLD 576,
1999 PTD 3851,
(1998) 231 ITR 106,
(1999) 79 TAX 316
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
2(24)(va),
28(iiia)
|