TaxTMI 
TaxTMI 
1980 (9) TMI 108
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....as not justified in holding that the proceedings under s. 147(b) of the IT Act had been validly initiated by the ITO. 2. It appears that the proceedings under s. 147(b) of the Act were initiated by the ITO on the basis of a note by the Revenue Audit that certain amounts collected by the assessee as sales tax, which had been directly credited to the profit and loss account of the firm, had not be....
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....led that amounts collected by a businessman as sales tax constitute his trading receipts and have to be included in computing his business profits (vide the decision of the Supreme Court in Sindair Murray & Co. (P) Ltd. vs. CIT, Calcutta 1974 CTR (SC) 283 : (1974) 97 ITR 615 (SC) and Chowringhee Sales Bureau P. Ltd vs. CIT (W.B.) 1973 CTR (SC) 44 : (1973) 87 ITR 542 (SC). In view thereof, the Comm....
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.... to the effect that sales tax liability arising during the year has already been allowed as a deduction by the ITO in computing the taxable profits. The ld. counsel for the assessee has not placed any material before us to rebut that specific finding by the Commissioner(A). 6. In regard to the second contention raised by the ld. counsel for the assessee, we hold that while the aforesaid sum of R....