https://www.taxtmi.com/caselaws?id=27339 Amounts collected in the course of business retain the character of trading receipts where their real nature is commercial income, even if recorded in the books as a liability. Retained sales tax refunds not passed on to dealers are treated as taxable trading receipts because the decisive test is the true character of the receipt, not its accounting treatment. Likewise, sums collected from dealers for payment to the Indian Sugar Syndicate and not remitted are treated as assessable income when retained by the assessee. On that basis, the note states that both amounts were liable to tax. en-us Tue, 12 Mar 1985 00:00:00 +0530 Fri, 12 Feb 2010 12:06:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27339 Amounts collected in the course of business retain the character of trading receipts where their real nature is commercial income, even if recorded in the books as a liability. Retained sales tax refunds not passed on to dealers are treated as taxable trading receipts because the decisive test is the true character of the receipt, not its accounting treatment. Likewise, sums collected from dealers for payment to the Indian Sugar Syndicate and not remitted are treated as assessable income when retained by the assessee. On that basis, the note states that both amounts were liable to tax. Case-Laws Income Tax Tue, 12 Mar 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27339