| Case ID |
f9bb4df3-1150-44fd-8098-f0af304a6dd4 |
| Body |
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| Case Number |
D-2741 of 1975-76 |
| Decision Date |
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| Hearing Date |
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| Decision |
The Allahabad High Court ruled in favor of the revenue, determining that the amount of Rs. 15,057 constituted the income of the assessee for the relevant previous year. The court stated that the assessee had treated this amount as part of its trading receipts, despite the claim to the contrary. The decision emphasized that the failure to deposit the amount in a designated account indicated an acceptance of the amount as income. The court affirmed that if the assessee's right to the amount was ultimately negated, it would still be entitled to claim a deduction in that year. This ruling clarified the conditions under which excess amounts received by an assessee should be treated for income tax purposes. |
| Summary |
The case revolves around the interpretation of income assessability under the Income-tax Act, 1961, specifically concerning the sale price of fertilizers that was increased by the Central Government. The district authorities required the assessee to deposit the excess amount received from customers, leading to a dispute over the income classification of the retained amount. The High Court's decision underscores the importance of compliance with regulations regarding excess income and the implications of treating such amounts as income. This case serves as a significant reference for similar disputes regarding income assessment and tax liabilities. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
B.P. Jeevan Reddy, C.J.,
G.D. Dube, J.
|
| Lawyers |
Counsel for the revenue
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Kedar Nath Finishing Works
|
| Citations |
1991 SLD 1601,
(1991) 188 ITR 158
|
| Other Citations |
Govind Prasad Prabhu Nath [IT Appeal No. 2126 of 1975-76]
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
4
|