https://www.taxtmi.com/caselaws?id=8833 Amounts recovered from customers as part of the sale price are trading receipts and are taxable as business income when received, unless evidence shows they were held as refundable deposits. The character of the receipt is determined at the time of the transaction, and a later dispute about sales tax liability does not change that character. Where an assessee itself credits the amount to the profit and loss account, that treatment supports revenue character. Any later refund to customers is dealt with in the year of repayment. en-us Wed, 02 Aug 1972 00:00:00 +0530 Tue, 16 Jun 2009 11:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8833 Amounts recovered from customers as part of the sale price are trading receipts and are taxable as business income when received, unless evidence shows they were held as refundable deposits. The character of the receipt is determined at the time of the transaction, and a later dispute about sales tax liability does not change that character. Where an assessee itself credits the amount to the profit and loss account, that treatment supports revenue character. Any later refund to customers is dealt with in the year of repayment. Case-Laws Income Tax Wed, 02 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8833