TaxTMI 
TaxTMI 
2013 (5) TMI 235
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.... circumstances of the case the I.T.A.T. was right in law in holding that the amount of Rs.45,950/- and Rs.10,000/- representing security for gas cylinders in units Nos.I and II received by the assessee could not be treated as trading receipt and assessable as income for the assessment year 1983-84?" The said question arises out of the facts that the assessee is a manufacturer of gas and supplies gas to the customers in cylinders. The assessee received security deposit from the customers for the supply of cylinders. The depreciation was claimed on the cylinders by the assessee. The question, which had arisen before the Assessing Officer, is; whether the amount of Rs.45,950/- and Rs.10,000/- in the hands of the assessee were in the nature of....
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.... aforesaid judgment, learned counsel for the Revenue vehemently argued that the order passed by this Court in assessee's own case is not sustainable. The aforesaid judgment of the Supreme Court has been examined by different High Courts such as Delhi High Court in Commissioner of Income Tax Vs. Goyal Gases P. Ltd. (1991) 188 ITR 216; Madras High Court in Commissioner of Income Tax Vs. Madurai Soft Drinks (P) Ltd. (2000) 241 ITR 229 & Commissioner of Income Tax Vs. Madurai Soft Drinks Pvt. Ltd. (2005) 276 ITR 607. Similar issue has been examined by Madhya Pradesh High Court in Commissioner of Income Tax Vs. Doongaji & Co. Distillery (2005) 276 ITR 402 as well as Karnataka High Court in Commissioner of Income Tax & another Vs. Brindavan Beve....
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....finite obligation on the part of the assessee to return the money to the customer which they had collected by way of deposit or one may say by way of security against the sale of bottle. The money in such cases was not in the nature of income as such because it had to be returned to the customer from whom it was received on fulfillment of certain conditions on behalf of the customer. In this view of the matter the amount of Rs.72,900/- could not be held as an income of the assessee for the year in question. Accordingly, the Tribunal was right in answering this question against the Commissioner of Income Tax and in favour of the assessee. We on our part also answer question No.4 against the Commissioner of Income Tax and in favour of the ass....