Ruma Pal, J. - (1.) The issue in this case relates to the validity of an intimation under Section 143(1)(a) and the constitutionality of the provisions of Section 143(1)(a) and Section 143(1A) of the Income-tax Act, 1961 (referred to as "the Act").
(2.) The issue arises in the background of the following facts.
(3.) Petitioner No. 1 is a company (referred to as "the company"). The company exports diverse goods. In respect of its export, the company became entitled to receive cash compensatory support from the Government of India. For the assessment year 1989-90, the company received cash compensatory support amounting" to Rs. 7,99,144 from the Government. The company filed its return for the assessment year in question claiming that the amount received by it on account of cash compensatory support was not taxable. However, in the return, the company stated that in case the amount was considered as taxable it may be assessed subject to the company's right of appeal or other remedy available under the law. The stand of the company that the cash compensatory support was not taxable was based on the decision of the Special Bench of the Income-tax Appellate Tribunal in the case of Gedore, Tools (India) (P.) Ltd. v. IAC [1988] 25 ITD 193 (Delhi).;