https://www.taxtmi.com/caselaws?id=15363 The High Court of Madras ruled in favor of the Revenue in a case concerning whether amounts collected by the assessee as deposit against sales tax should be considered part of its trading receipt for income tax assessment. The court held that despite being labeled as deposits, the true nature of the collections was trading receipts, as they were meant to meet the statutory liability towards sales tax. Emphasizing the purpose of collection, the court concluded that such amounts should indeed be treated as part of the assessee's trading receipt, rejecting the assessee's argument based on legal precedents. en-us Wed, 17 Mar 1999 00:00:00 +0530 Thu, 06 Aug 2009 11:10:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15363 The High Court of Madras ruled in favor of the Revenue in a case concerning whether amounts collected by the assessee as deposit against sales tax should be considered part of its trading receipt for income tax assessment. The court held that despite being labeled as deposits, the true nature of the collections was trading receipts, as they were meant to meet the statutory liability towards sales tax. Emphasizing the purpose of collection, the court concluded that such amounts should indeed be treated as part of the assessee's trading receipt, rejecting the assessee's argument based on legal precedents. Case-Laws Income Tax Wed, 17 Mar 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15363