1978 (5) TMI 115

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....res and sells shoes. For the assessment year 1966-67, it disclosed gross sales at Rs. 6,57,366 of which U.P. sales were of Rs. 2,57,738. All these sales were made by the assessee to the State Trading Corporation at Agra. The corporation paid the entire agreed price to the assessee. Subsequently, the corporation paid a sum of Rs. 21,316 to the assessee on account of devaluation of currency. The ass....

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....ce between the assessee and the State Trading Corporation, there was no agreement between the parties that the assessee would get any amount on account of devaluation of rupees. The corporation was not bound to make any payment out of the money which it received on account of devaluation from ex-India parties. There is no material on record to show that the disputed amount formed part of the sale ....

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....en the parties that the shoes will be exported. There was no agreement that in case the rupee was devalued and the corporation received extra amount, it will be repaid to the assessee. In these circumstances, it cannot be said that the amount of Rs. 21,316 that was paid by the State Trading Corporation on its own to the assessee represented the sale consideration for the contract of sale with the ....

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....a fortuitous circumstance and that the corporation decided to share the bonanza with its own suppliers. On the facts, it is clear that the sale consideration receivable by the assessee from the corporation did not either in fact or in law appreciate in value so that it can be said that this amount constituted part of the sale consideration. It is well-settled that a receipt in the course of busine....