1978 (10) TMI 84

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.... in the reassessment for the asst. yr. 1971-72. 2. For the said assessment year the ITO added the following amounts to the business income assessed originally: 1. Charity Collection made while selling yarn; Rs. 4,842.00 2. Charity collections made while purchasing cotton Rs. 2,823.00 . . Rs. 7,665.00 The ITO on the basis of the report of the internal audit party he....

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.... purchase cost. The AAC following the order of the Madras Bench-C of the Tribunal comprising S/Shri V. Balasubramaniam & V. Rajagopalan in the case of M/s Alagappa Cotton Mills, Raja palayam vs. ITO, Central Circle VII, Madras (1) in which the case law bearing on the subject of charity collection was discussed in detail. The AAC found that the observation made by the Tribunal in para 9 of its orde....

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....charitable purposes. There is nothing to show that the payments were compulsory or had anything to do with the sale or purchase of the commodities themselves. We are therefore of the opinion that the payments were made voluntarily and the assessee only constituted a conduit pipe for the collection of the above amounts. The amounts cannot therefore be added to the assessee's income. The AAC has onl....