TaxTMI 
TaxTMI 
1983 (11) TMI 268
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....taka Sales Tax Act, 1957 (hereinafter referred to as "the Act"). 3.. The assessee is a wholesale dealer in foodgrains, pulses, jaggery, etc., both on own account and on commission basis. For the assessment year 1975-76 the assessee claimed exemption in respect of Rs. 18,104.68 being the amount collected from the customers as charity at the rate of 10 ps., per bag or article. The assessee contended that the collections could not be included in the sale price, that it was specifically collected for purposes of charity and they do not form part of his trading receipts. But the assessing officer disallowed this claim on the ground that the said collections were made in the bills before the sale was completed and as part of the price paid and....
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....come-tax Act has observed that it was a charity collection specifically made by the dealer and therefore it did not form part of the income of the assessee. It was found as a fact that such collection was specifically made for the purpose of charity. It was further observed that such realisations made by the assessee was held under an obligation to spend the same for the purpose for which it was collected. The question whether "dharmada" could form part of the turnover under the Sales Tax Act was not considered in that case. On the contrary that question was expressly left open. While dealing with the said question, the Supreme Court observed: "The two decisions on which reliance was placed by counsel for the revenue, namely, Poosarla Sa....
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....e or object. In N.S. Pandaria Pillai v. State of Madras [1973] 31 STC 108, the Madras High Court while dealing with a corresponding definition under the Tamil Nadu General Sales Tax Act held that if the mahimai collections made formed part of the aggregate amount for which the goods are sold by the assessee, it will fall within the definition of "turnover" unless there is any specific statutory deduction available either under the Act or under the Rules. 10.. In the instant case, as could be seen from the two sample bills which are reproduced below: Bill No. 18919 dated 16-4-1975: 2 bags Urid dhal Rs. 610 2 bags Moong dhal Rs. 610 ----------- Rs. 1,220 S.T. Rs. 18.30 Charity Rs. 0.40 -------------- Rs. 1,238.70....
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....e the total amount mentioned in the bill that is to be taken into account and we need not look into each one of the components of the bill for this purpose. Both from the point of view of the seller as well as the purchaser, it is the aggregate amount mentioned in the bill that is in contemplation of both parties to the transaction, as the price paid, and received in the transaction and not the individual items mentioned in the bill. 12.. It is also suggested on behalf of the assessee that the purchaser having voluntarily made this contribution towards charity, it is not correct to treat it as a part of the assessee's trading receipts since it was never intended to be a part of the price and the contribution so made by the purchaser is f....