1984 (2) TMI 35

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....the case, the sum of Rs. 61,069 collected by the assessee towards rusum on commission sales of jaggery constitute income liable to tax for the assessment year 1970-71 ?" The assessee is a firm of four partners carrying on business as commission agents for the sale of jaggery. The ITO noticed that the assessee had collected a sum of Rs. 61,069 by way of rusum representing the amount as sales tax....

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....8] 112 ITR 58) in the case of the same assessee for the assessment years 1968-69 and 1969-70 in which it was held that the assessee had adopted the mercantile system of accounting and as such the liability arises in the year in which the sales are made. On this basis it was held that the amount constituted a trading receipt. It is contended by Mr. M. Suryanarayana Murthy, the learned counsel fo....