https://www.taxtmi.com/caselaws?id=21566 A statutory order fixed the sale price of molasses and required one-third of the price to be credited to a separate storage fund, kept in a separate bank account and used only as directed by the Government. Because the assessee had no unfettered right to treat that amount as its own, the sum was diverted at source by overriding title and never formed part of taxable income. The Karnataka High Court held that the transfer to the molasses storage fund was not taxable in the assessee's hands, and the Revenue's challenge failed. en-us Wed, 11 Sep 1991 00:00:00 +0530 Tue, 09 Dec 2025 09:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21566 A statutory order fixed the sale price of molasses and required one-third of the price to be credited to a separate storage fund, kept in a separate bank account and used only as directed by the Government. Because the assessee had no unfettered right to treat that amount as its own, the sum was diverted at source by overriding title and never formed part of taxable income. The Karnataka High Court held that the transfer to the molasses storage fund was not taxable in the assessee's hands, and the Revenue's challenge failed. Case-Laws Income Tax Wed, 11 Sep 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21566