https://www.taxtmi.com/caselaws?id=19209 The High Court of Madras ruled in favor of the assessee, a cotton yarn manufacturer, in a case concerning the treatment of sales tax collected as a trading receipt for taxation purposes. The court held that the sales tax amount credited in the books was considered an interest-free loan by the State Government, repayable over five years, and therefore not taxable income. Drawing a distinction from previous legal precedents, the court agreed with the assessee's position and supported the Tribunal's decision to delete the addition made by the Income-tax Officer. The court answered the issue in the affirmative for the assessee, with no costs awarded to either party. en-us Wed, 21 Dec 1994 00:00:00 +0530 Wed, 04 Nov 2009 16:24:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=19209 The High Court of Madras ruled in favor of the assessee, a cotton yarn manufacturer, in a case concerning the treatment of sales tax collected as a trading receipt for taxation purposes. The court held that the sales tax amount credited in the books was considered an interest-free loan by the State Government, repayable over five years, and therefore not taxable income. Drawing a distinction from previous legal precedents, the court agreed with the assessee's position and supported the Tribunal's decision to delete the addition made by the Income-tax Officer. The court answered the issue in the affirmative for the assessee, with no costs awarded to either party. Case-Laws Income Tax Wed, 21 Dec 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=19209