1977 (1) TMI 17

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....rate of 1/2 old paisa per bag and gaushala at the rate of 2 old paise per 100 rupees from all its constituents to whom the goods were sold. The assessee claimed that the receipts under these heads were exempt because they had to be spent for the specific purposes for which they were realised from the constituents. The Income-tax Officer, however, disallowed this claim and brought the amounts realised under these heads to tax. This view was upheld by the Appellate Assistant Commissioner. The assessee took the matter to the Tribunal. The Tribunal, relying upon a decision of this court in Agra Bullion Exchange v. Commissioner of Income-tax [1961] 41 ITR 472 (All) and Bijli Cotton Mills Ltd. v. Commissioner of Income-tax [1970] 76 ITR 194 (All)....

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.... agreement entered into with the purchasers that it would be spent for the purposes for which they were realised. The initial nature and character of these receipts, therefore, is not that of trading receipts. The Tribunal upheld the assessee's claim. At the instance of the Commissioner of Income-tax the Tribunal has referred the following question of law for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the receipts on account of mandir, gaushala and dharmada were trading receipts in the hands of the assessee?" Since then, a Full Bench of this court has considered this very question in the case of Thakur Das Shyam Sunder v. Additional Commissioner of Income-tax [1974] 93 ITR 27. That was a....