Only profit on the sale of the licence should be chargeable to tax under s 28(iiia) and not the profit which may come in the future on the sale of the licence

GKW Limited Vs CIT (Calcutta High Court)- Only profit on the sale of the licence should be chargeable to tax under s 28(iiia) and not the profit which may come in the future on the sale of the licence.

Provisions relating to payment of advance tax are applicable in a case where the total income is deemed to be 30% of the book profits under s 115JA and the Tribunal was justified in upholding the charging of interest under s 234B in the appellant’s case for AY 1997–1998.

Expenditure incurred on the rent and repairs and maintenance of the guest house is allowable under s 30.

IN THE HIGH COURT AT CALCUTTA

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