https://www.taxtmi.com/caselaws?id=13681 The High Court ruled in favor of the assessee on both issues. It held that the sum collected for Central sales tax was not part of the business income as it constituted a liability, allowing for its exclusion under the mercantile system of accounting. The court emphasized that the sales tax collected formed part of trading receipts and that the liability to pay sales tax arose upon sale or purchase, supporting the assessee's position as a trustee in collecting the tax. The court referenced legal precedents and upheld the consistent application of principles regarding sales tax treatment under the mercantile system of accounting. en-us Thu, 02 Dec 2004 00:00:00 +0530 Wed, 01 Jul 2009 15:43:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13681 The High Court ruled in favor of the assessee on both issues. It held that the sum collected for Central sales tax was not part of the business income as it constituted a liability, allowing for its exclusion under the mercantile system of accounting. The court emphasized that the sales tax collected formed part of trading receipts and that the liability to pay sales tax arose upon sale or purchase, supporting the assessee's position as a trustee in collecting the tax. The court referenced legal precedents and upheld the consistent application of principles regarding sales tax treatment under the mercantile system of accounting. Case-Laws Income Tax Thu, 02 Dec 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13681