1994 (12) TMI 36

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....e Tribunal referred the following question for our opinion : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in deciding that there was no justification for retaining the addition of Rs. 1,07,118 and directing the deletion of the same ? " The assessee is a manufacturer of cotton yarn. In the books of account relevant for the assessment year 19....

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....ncome-tax law. Even though the assessee is maintaining cash system, since a portion of the sales tax is collected by the Assessing Officers of the Sales Tax Department, that portion of the sales tax collection would be deemed to be the trading receipts and as such liable to be taxed. In support of his contention, learned standing counsel for the Department relied on a decision in Chowringhee Sales....

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.... [1975] 99 ITR 226 (Mad). According to the facts arising in that case, in respect of sales tax collections the assessee maintained a separate account and these were not brought into his trading account. The Income-tax Officer treated the excess collections as the assessee's income. The Appellate Assistant Commissioner and the Tribunal held that the assessee's actual liability to sales tax has to b....

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....ther hand, the facts arising in the present case are entirely different from the facts arising in the abovesaid two decisions. According to the facts arising in this case, in view of the State Government's order in G. O. Ms. No. 2771 dated September 30, 1969, as a matter of relief to the textile industry the Government had authorised retention of 50 per cent. of the sales tax due from the mills as....