TMI Blog1979 (7) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... d as its income for the assessment year 1967-68 ? " The assessee is a firm carrying on business of sale and export of lunghis. It exported handloom fabrics during the quarters ending March 31, 1965, December 31, 1965, March 31, 1966, and June 30, 1966. Under a scheme formulated by the Government of India for the development of such exports, the exporters of handloom fabrics were given licences to import cotton of the value of 40% of the f.o.b. value of the exported fabrics. The scheme stipulated that such exporters should surrender the licences to import cotton to the Textile Commissioner in lieu of cash incentives. The cash incentives were originally at the rate of 21% of the value of the cotton that could be imported, but later on it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks regarding the cash incentives due to it with reference to the exports made during the earlier years. He, accordingly, determined the total income to be Rs. 1, 15,910 by his order dated 6th August, 1970. The AAC on appeal confirmed the assessment so made. The assessee appealed to the Tribunal, and the Tribunal pointed out that a person exporting handloom fabrics had to make the necessary application to the concerned authority for the issue of import entitlements in the prescribed form and accompanied by the necessary documents and that if such an application was made, such exporter would be entitled to import licences and that in view of the above the right to receive the import entitlements arose when a proper application was mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould thus accrue to the assessee as soon as the necessary proof is tendered. The fact that there was some delay on the part of the authorities concerned in making the actual disbursement will not stand in the way of the assessee being assessed with reference to the said amount, which became due to the assessee at the time of the application. The right to the amount was established on the date of the application. In so far as the assessee had made the application and produced the proof in respect of exports prior to the commencement of the relevant accounting period (i.e., prior to April 14, 1966), the amount could not be said to have accrued in the year April 14, 1966, to April 13, 1967. In this view, the Tribunal acted rightly in sustainin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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