1980 (11) TMI 10

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....indings of the Appellate Assistant Commissioner that the sum of Rs. 3,00,604 and Rs. 64,757, being the amount transferred to the deposit account by the assessee on the sale of tractors, did not represent its taxable income during the A.Ys. 1972-73 and 1973-74, respectively ? " The material facts giving rise to this reference, as set out in the statement of the case, briefly are as follows: The assessee is a government company established for the development of agro-industries and for carrying on allied activities. The assessee derived income in the assessment years 1972-73 and 1973-74 by way of commission on sales of tractors purchased by it from M/s. Hindusthan Machine Tools Ltd. The assessee had placed an order with M/s. Hindusthan ....

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....ented the income of the assessee during the relevant assessment years. On appeal, the AAC found that the excess price charged by the assessee was to be refunded as the assessee was entitled to a fixed commission of Rs. 500 per tractor only. The AAC, therefore, held that the excess price realised by the assessee could not be held to be the income of the assessee. He, therefore, deleted the additions , of Rs. 3,00,604 and Rs. 64,757 made by the ITO towards the total income of the assessee during the assessment years 1972-73 and 1973-74. Aggrieved by the order passed by the AAC, the Department filed appeals before the Tribunal. The Tribunal found that the amounts transferred by the assessee to the deposit account were never its income and that....