Narrator: Good Afternoon, to all and one present here.

Today we, group 8, has gather here to present you a role play, which is based on the true event that took place in the supreme court of India. The case is under the code of Direct taxation in India. The direct taxation is being taken care by the Central Board of Direct Taxes (CBDT); it is a division of Department of revenue under Ministry of Finance. CBDT is governed by the revenue act 1963. CBDT is given the authority to create and control direct taxes in India. The most important function of CBDT is to manage direct tax law followed by Income Tax department. The case has been fought between the Chhotalal Samji – the petitioner and the Income Tax Officer-the respondent. Brief history of the case, Chhotalal Samji is not agreeing to pay taxes to the Income Tax Authority. He claims to have earned profits on the sale of DEPB licence under Foreign Trade (Development and Regulation) Act, 1992 and not under Imports (Control) Order, 1955, made under the Import and Exports (Control) Act, 1947 Therefore, such profits were not includible in business profits for computing the deduction under Section 80HHC of the said Act. Now taking you the lawyer chember, where the Assess states its claim in-front of the lawyer. Kaustabh: I, Chhotalal Samji, claims to have earned profits on the sale of DEPB licence under Foreign Trade (Development and Regulation) Act, 1992. And I am liable to pay income-tax under the head "Profits and gains of business or profession". I also claim that I have derived negative profits (loss) from export of trading goods. So why I should pay taxes to the Income-Tax Department. Prashanti: Relax Samji, Relax.! Have a glass of water. Kaustabh: [Gallops Water], Please get me justice. Prashanti: You do not worry Samji, I will get you the justice. Narrator: Against which the legal case was field, the hearing begins, and the following discussion were exchanged between the lawyers. The role of the bench is being played by Divye Agarwal. The role of the petitioner lawyer is being played by Prashanti Mishra. And the respondent would be in acted by Gagandeep Kaur. Court Room

It is here by also claimed that the Assesse have derived negative profits (loss) from export of trading goods. 1992 and not under Imports (Control) Order. Gagan: The appellants were importers and users of glass chatons the import of which was prohibited except under a licence granted by the licensing authorities under the Import and Export Control Act. The assesse was supposed to pay income-tax under the head "Profits and gains of business or profession".Explains . My Client. The appellants who made no application for licence contended inter alia that the provisions of para. and the Imports (Control) Order. are alone includible in the profits of a business for computing the deduction under Section 80HHC. Held. The import was totally prohibited for some time but afterwards it was permitted under the Export Promotion Scheme and licence was issued in favour of the State Trading Corporation. 1955. made under the Imports and Exports (Control) (iiic) any duty of customs or excise re-paid or re-payable as drawback to any person against exports under the Customs and Central Excise Duties Drawback Rules. 1955. made under the Import and Exports (Control) Act. 19(1) (f) & (g) and 31 of the Constitution. that the decision that import of a particular commodity shall be canalised by a selected channel or through selected agencies is a reasonable restriction in the interest of the general public. are valid and do not contravene Arts. Nor do they contravene Art. 1955 . 1971. 19(1)(f) and (g). 1955 and s. that the Central Government or the Chief Controller of Imports and Exports may refuse to grant a licence or direct any licensing authority not to grant licence if the licensing authority decided to canalise imports and the distribution thereof through special or specialised agencies or channels are unreasonable restrictions on the right to carry on trade 863 and to acquire property and as such contravene Arts. 1947.Prashanti: Be Lord. 1947 and duty drawback repayable against exports under the Customs and Central Excise Duties Drawback Rules. 1955. 31 of the Constitution as no question of acquisition of any right arises by the refusal of a licence. 3 of the Imports and Exports Control Act." My assesse also claiming profits on sale of a licence granted under Imports (Control) Order. 1955. 1955. Chhotalal Samji claims that he has earned profits on the sale of DEPB licence under Foreign Trade (Development and Regulation) Act. 14. 6(h) of the Imports (Control) Order.Imports (Control) Order. 1971. 14. 6(h) of the Imports (Control) Order. 1947.(iiia) profits on sale of a licence granted under the Imports (Control) Order. The provisions of para.

Section 28(iiia).Prashanti: Explains – Section 28. 1947 Prashanti: Section 80HHC Divye: The Verdit . Section 28(iiic) Gagan: Import and Exports (Control) Act.