Trading receipts treated as taxable income where amounts collected from customers were part of sale price; writ relief refused for alternative remedy.

Amounts collected from customers as part of the sale price, though described as excise duty, constitute trading receipts in the hands of the assessee and are taxable as income; the fact that the excise levy had earlier been quashed did not alter the character of the receipt. The challenge under Article 226 was also rejected because an effective statutory remedy was available under the Income-tax Act, and writ jurisdiction was not ordinarily to be exercised in such circumstances. The assessment on the disputed receipts was therefore upheld and the writ petition dismissed.

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Issues: (i) Whether amounts realised by the assessee from customers as purported excise duty formed part of trading receipts and were liable to income-tax. (ii) Whether the writ petition under Article 226 was maintainable in view of the alternative remedy under the Income-tax Act.

Issue (i): Whether amounts realised by the assessee from customers as purported excise duty formed part of trading receipts and were liable to income-tax.

Analysis: Amounts collected by a dealer from customers as part of the price of goods are trading receipts. Such receipts are taxable as income even if the levy described as excise duty was earlier quashed, because the decisive factor is the character of the receipt in the hands of the assessee.

Conclusion: The amounts realised as purported excise duty were taxable trading receipts and the income-tax levy was justified.

Issue (ii): Whether the writ petition under Article 226 was maintainable in view of the alternative remedy under the Income-tax Act.

Analysis: The petitioner had an alternative statutory remedy available under the Income-tax Act for challenging the assessments. In such circumstances, interference in writ jurisdiction was not warranted.

Conclusion: The writ petition was not maintainable on this ground and afforded no relief.

Final Conclusion: The assessment of tax on the disputed receipts was upheld and the writ petition was dismissed, with the interim order vacated.

Ratio Decidendi: Amounts collected from customers as part of the sale price constitute trading receipts taxable as income, and writ jurisdiction will ordinarily not be exercised where an effective statutory remedy is available.

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