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2002 (10) TMI 78 - HC - Income Tax"Whether Tribunal was right in law in holding that the excise duty collection was a trading receipt in the year of receipt and hence excise duty refund of Rs. 1,45,752 was liable to tax in the hands of the assessee under section 41(1) of the Income-tax Act, 1961?" - we are of the view that the amount which was collected by the assessee against the excise duty or the sales tax was on account of business and as such is a trading on the business receipt. Thus, it will fall in the income of the assessee. We are not impressed with the contention of Mr. Ranka that the amount has been credited in a separate account. Simply a separate account would not change the character of the initial collection. The amount after collection has neither been refunded to the customers nor paid to the Government. Thus, it is a case of unlawful enrichment. If such refund is not considered as income, the assessee will be benefited twice. Thus, the Tribunal was justified in setting aside the order of the Commissioner of Income-tax (Appeals) and restoring the order of the assessing authority upholding the addition of Rs, 1,45,752.
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