TaxTMI 
TaxTMI 
1991 (7) TMI 4
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....ting surplus in 'unclaimed undercharges account' was not a receipt incidental to the carrying on of business and deleting it ? The facts as would appear from the statement of case are stated hereinafter. The assessee is a limited company. The assessee-company is a dealer in coal and works as a middleman between the collieries and the consumers of coal. Coal was loaded into railway wagons by the collieries, i.e., the consignor, who sent copies of the forwarding notes to the assessee-company. The freight was payable by the consignee. Normally, the consignee had to pay the freight payable with reference to the full loading capacity of the railway wagon irrespective of the actual quantity of coal loaded. The assessee-company preferred a bill....
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....40 ITR 939, sustained the action of the Income-tax Officer. Being aggrieved, the assessee filed appeals before the Income-tax Appellate Tribunal. It was submitted by the assessee before the Tribunal that the Commissioner of Income-tax (Appeals) was wrong in sustaining the order of the Income-tax Officer without considering the fact that the facts in Karamchand Thapar and Bros. (Coal Sales) Ltd. v. CIT [1983] 140 ITR 939, were wrongly stated and that the decision of this court in the case of the assessee for an earlier year reported in CIT v. Karam Chand Thapar and Bros. (Coal Sales) Ltd. [1979] 117 ITR 621, was based on correct facts. The Tribunal, by placing reliance on another order of this court dated May 13, 1985, in I. T. Ref. No. 410 ....
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....s. 43,288 out of the said unclaimed credit balance represented undercharges in respect of the freight for the underloaded wagons, which the customers of the assessee had to pay under the Railway Rules, in spite of the fact that the wagons in question were not loaded to their full capacity by the collieries. The assessee claimed these undercharges from the collieries. The same was passed on by the assessee to the customers who made claims in this behalf from the assessee. The Income-tax Officer found that such undercharges were not credited to the account of the individual customers and held that the same represented the trading receipts of the assessee and were liable to tax. In coming to the above conclusion, the Income-tax Officer relied ....
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....eipts as and when claims were preferred by them. After meeting such claims, there was a sizeable balance left, which the assessee transferred to the profit and loss account under the head " Miscellaneous receipts ". In the relevant year, such unclaimed credit balance amounted to. Rs. 49,217. The Tribunal came to the conclusion that there was no reason to differ from the decision of the Tribunal for the previous year and accordingly held that the authorities below were right in treating this amount as the assessee's receipts from its business. There, a Division Bench of this court held that the findings of fact of the Tribunal have not been challenged as being perverse and had consequently become final. Accordingly, the amount of Rs. 43,2....