1991 (12) TMI 117

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....ngly, he served the assessee with a notice dt. 9th Feb., 1988 under s. 154, the ITO noticed the following details: (1) Central Sales-tax 911 (2) State Sales-tax 42,668 (3) State Sales-tax 6,300 . 49,879 After deducting the liability of Rs. 11,277 as appearing in the balance sheet of the last year, the ITO disallowed an amount of Rs. 38,602, purporting to do so under s. 43B on the grounds that sales-tax receipts constituted trading receipts. 3. In appeal, it was submitted on behalf of the assessee before the learned Dy. CIT(A) that as held by the Supreme Court in the case of CIT vs. Bijlee Cotton Mills P. Ltd. (1979) 8 CTR (SC) 1 : (1979) 116 ITR 60 (SC), the sales-tax collected by the assessee on behalf of the ....

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.... behalf of the CTO and that it was, therefore, in the position of a trustee only. He submitted that the provisions of s. 43B were not attracted and the enhancement of the amount of Rs. 11,277 was also bad. Reliance was also placed by him on the decision of the Supreme Court in the case of Bijlee Cotton Mills and on the following decisions: (i) CIT vs. Pyarilal Kasam Manji & Co. Etc. (1992) 101 CTR (Ori) 247 and (ii) CIT vs. Shri Jagannath Steel Corpn. (1991) 191 ITR 676 (Cal) and the decisions relied upon in those decisions. On the other hand, on behalf of the Department, Shri A.S. Chaudhary, the learned Deptl. Representative, strongly relied upon the decisions of Delhi High Court in the case of Sanghi Motors vs. CIT (1991) 91 CTR (Del) ....