TaxTMI 
TaxTMI 
1998 (9) TMI 613
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....Commissioner of Commercial Taxes by which overdraft or credit facility have been considered as the money of defaulter/customer. 2.. This interpretation is contrary to law as well as the bank practice. If there is any amount of the defaulter with the bank and the commercial tax department issues notice under section 14 of the Act, then the Bank is bound to remit it. But, if the facility has been....
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....funds are not available within the sanctioned limit, on its own, the bank cannot pay any amount because the bank does not owe any money to the customer. 3.. The matter has been examined and it is considered that once a bank sanctions overdraft facility to a dealer, it binds itself to pay to the dealer the amount of money agreed to be advanced under the overdraft arrangement. In that sense, the ....
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....d and determined were supplied to the 'A' company, on condition that the goods were held in trust and that the money would be payable to the bank and not to the assessee-company, the money, i.e., sale proceeds could not be said to be due and payable to the assesseecompany and hence the said money would not be payable to the income-tax department under section 226(3) for recovery of taxes due on th....
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....A) would come into play and the sum so standing to the credit of the assessee might be directed to be paid over." 4.. Under section 14 of the Karnataka Sales Tax Act, 1957, any person from whom money is due or may become due to the dealer or who holds or may subsequently holding money for or on account of the dealer is liable to pay to the assessing authority the said amount. A credit facility ....