Trading receipts treatment of tax collections collected in business and retained as mixed funds was upheld as taxable income.

Amounts collected in the course of business towards statutory tax liability and mixed with the assessee's own funds were treated as trading receipts, because tax collections received during trade assume that character when not held separately for the payors. The distinction between sales tax and purchase tax did not alter that principle, as both are statutory levies collected in the course of business. The amounts were therefore includible in total income against the assessee.

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Issues: Whether amounts collected by the assessee towards purchase tax, but kept in a suspense account and not paid over to the Government, constituted trading receipt includible in the total income.

Analysis: The assessee collected amounts from purchasing dealers towards tax liability under the sales tax law and mixed the collections with its own funds instead of maintaining them in separate accounts for the payors. The Tribunal's finding brought the case within the principle that tax collections received in the course of business assume the character of trading receipts. The distinction between sales tax and purchase tax did not affect the application of that principle, since both are statutory levies collected in the course of trade.

Conclusion: The amounts were trading receipts and were rightly included in the assessee's total income, against the assessee.

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