1993 (3) TMI 5

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....he question which the Revenue wanted to raise reads thus : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the receipt of Rs. 1,38,577 realised at Re. 1 per bilty per customer through the bills and credited to a separate account called 'Dharmada' was not assessable to tax as revenue receipt " The case of the Revenue, briefly stated, is to the following effect : the assessee is a private limited company engaged in the business of transport. During the accounting period ending January 31, 1970, relevant to the assessment year 1970-71, the respondent collected an amount of Rs. 1,38,577 on account of Dharmada. The Income-tax Officer called upon the respondent-assessee to explain why the ....

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....hem. 3. The company has nothing to do with this collection as it has to distribute the same." It is thus evident, says counsel for the Revenue, that the amount, though collected in the name of Dharmada, was neither meant for charity nor was it ever spent on charitable purposes. Distribution of the said money among the " poor relatives of the labourers working in the business premises ( of the assessee ) and also to give at the time of marriages of girls in their families " cannot be called a charitable purpose. Indeed, according to the respondent himself, these amounts were distributed among them with a view "to get full co-operation from them." According to learned counsel, the assessee is really using the money collected in the name....