https://www.taxtmi.com/caselaws?id=7758 Sales tax collections are not taxable income if they do not have the character of trading receipts at the time of receipt. The governing principle applied is that taxability depends on the nature of the amount when initially received, and later retention, appropriation, or failure to remit it to the Government does not change that character for income-tax purposes. On the admitted facts, the excess of sales tax collections over payments made to the Government was therefore held not to be taxable income of the assessee, and the reference was answered in favour of the assessee. en-us Wed, 18 Mar 1970 00:00:00 +0530 Wed, 18 Mar 2009 18:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7758 Sales tax collections are not taxable income if they do not have the character of trading receipts at the time of receipt. The governing principle applied is that taxability depends on the nature of the amount when initially received, and later retention, appropriation, or failure to remit it to the Government does not change that character for income-tax purposes. On the admitted facts, the excess of sales tax collections over payments made to the Government was therefore held not to be taxable income of the assessee, and the reference was answered in favour of the assessee. Case-Laws Income Tax Wed, 18 Mar 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7758