TMI Blog2000 (7) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... the trade practice, whenever a foreign buyer approached the assessee who was not able to supply the diamonds, the assessee approached other diamond traders. The said traders would, thereafter, send the goods to the foreign buyer on approval basis. If the foreign buyer approves the goods, the sale would take place directly between the trader and the foreign buyer for which the assessee got one per cent. commission named as reassortment charges. In substance, the said reassortment charges constitute commission received by the assessee from the local parties in India from their sale. The narrow question is : whether such reassortment charges were includible in business profits in the above formula. The assessee has claimed that they were in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slature has made the amendment prospective. It was urged that the amendment was not clarificatory. That it was expressly made prospective and, therefore', it cannot be invoked in this appeal which relates to the assessment year 1988-89. We do not find any merit in the said contention. Firstly, it may be noted that the section had undergone various changes from time to time. Our attention was invited to the note on the Finance Act of 1990. It was contended that in the same Amendment Act, the Legislature has specifically provided for different types of amendments ; some of which are expressly made retrospective. As an illustration, it was contended that in the Explanation a new clause was added by way of clause (ba) defining the expression "t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. Moreover, the clarification has been introduced by way of clause (baa) in the Explanation. Hence, the said amendment was clarificatory in nature. It cannot be disputed that there were several conflicting orders passed by the Department as the position was not clear. Hence, the amendment has come into force from April 1, 1992. However, the said amendment is clarificatory in nature. Even without the amendment, with the inclusion of the above receipts in the business profits, the formula became unworkable because the assessees introduced receipts in the business profits which had no nexus with the export activity. In some cases, the result was that sale proceeds from export activity were nominal whereas the income from local sales was prop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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