1998 (8) TMI 33 - HC - Income Tax

Summary

The High Court of Madras dismissed the tax case petition regarding the treatment of deposits received by a soft drink manufacturer for bottles as income. The court upheld that the deposits were not income but meant for ensuring bottle return and reuse, not as sale proceeds. The intention of the parties was crucial, and the manufacturer's aim was to develop the market by recycling bottles. The decision was based on the distinction from previous cases and the Sale of Goods Act provisions.