TaxTMI 
TaxTMI 
1989 (2) TMI 87
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....e hon'ble Tribunal is legally correct in holding that the entire amount of rent receipts is not taxable in the year of collection ? " The assessee, during the assessment year 1983-84, was running a cold storage for storing potatoes and other agricultural produce and its activities were governed under the U. P. Regulation of Cold Storage Act, 1976. By section 26 of that Act an owner, a licensee, is prohibited from taking or receiving for storage or any other service rendered to the hirer, any amount over and above the charges fixed by the State Government under section 9 of that Act. In 1982, prior to the commencement of the previous year relevant to the assessment year in question, i.e., from February 1, 1982, to January 31, 1983, the....
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....ith the District Magistrates instead of in this court before whom the accounts shall also be furnished by the petitioners. Between the period September 4, 1982, to November 12, 1982, a sum of Rs.75,293 was collected by the assessee being the difference of Rs. 1.50 per quintal and the said amount was deposited with the District Magistrate. This amount of Rs. 75.293 was brought to tax in the hands of the assessee by the Income-tax Officer, which has been deleted by the Tribunal. It is in the background of the aforesaid facts that the present application has been moved by the Revenue seeking a reference of the question set out earlier. We have heard learned standing counsel appearing for the Revenue. The case of the assessee throughou....
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....962] 46 ITR 144 the Supreme Court has observed as under (headnote) : "Income-tax is a levy on income. Though the Income-tax Act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt, yet the substance of the matter is the income. If income does not result at all, there cannot be a tax, even though in book-keeping, an entry is made about a 'hypothetical income', which does not materialise . . . where, however, the income can be said not to have resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account." The above principle was reiterated b....
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....rt. However, the assessee was permitted to withdraw the same only on furnishing security. The question which fell for consideration before the Supreme Court was, whether the additional amount withdrawn by the assessee had accrued as income and was liable to tax at that stage. Holding in favour of the assessee, the Supreme Court observed as under (headnote) "... the entire amount was in dispute in the appeal filed by the State Government and the dispute was regarded by the court as real and substantial because the respondent was not permitted to withdraw the amount deposited by the State Government without furnishing a security bond for refunding the amount in the event of the appeal being allowed. There was no absolute right to receive t....