Katchi adhat transactions not taxable, while remand was upheld for factual segregation from pucki adhat dealings.

Katchi adhat transactions were held not includible in the assessee's taxable turnover, applying the earlier decision in the same assessee's case. The legal position on non-taxability was treated as settled for those transactions. However, the factual distinction between katchi adhat and pucki adhat still required identification for the disputed periods, so remand to the assessing authority for that segregation was upheld. The reference was thus answered by confirming the non-taxability of katchi adhat while sustaining the remand for factual classification of the transactions.

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Issues: (i) whether transactions representing katchi adhat were taxable in the hands of the assessee; (ii) whether the Tribunal was justified in upholding the order remanding the matter to the assessing authority for determining which transactions were katchi adhat and which were pucki adhat.

Issue (i): whether transactions representing katchi adhat were taxable in the hands of the assessee.

Analysis: The question stood covered by the earlier decision concerning the same assessee, where such katchi adhat transactions had been held not to form part of the taxable turnover. The same legal position was applied to the transactions in the present reference.

Conclusion: Such katchi adhat transactions were not taxable in the hands of the assessee.

Issue (ii): whether the Tribunal was justified in upholding the order remanding the matter to the assessing authority for determining which transactions were katchi adhat and which were pucki adhat.

Analysis: Although the non-taxability of katchi adhat transactions was settled, the factual question as to which specific transactions in the disputed periods fell within katchi adhat and which within pucki adhat still required determination. The remand preserved the adjudication of that unresolved factual classification.

Conclusion: The Tribunal was justified in upholding the remand order.

Final Conclusion: The reference was answered by affirming the non-taxability of katchi adhat transactions while sustaining the remand for factual segregation of the disputed transactions.

Ratio Decidendi: Katchi adhat transactions are not includible in taxable turnover, but where the factual classification between katchi adhat and pucki adhat remains unresolved, remand for that determination is legally justified.

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