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2019 (4) TMI 372 - MADRAS HIGH COURTAddition u/s 41(1) - remission or cessation - credits in the books of the Assessee in the nature of rents collected by the Assessee from its customers and payable to the Chennai Port Trust - HELD THAT:- The amounts have been received by the Assessee in the course of carrying on their business. By efflux of time, it had become the Assessee's own money. There has been no claim laid against the said money. Consequently, we hold that the amount in question could be treated as Assessee's income under Section 41(1) for Assessment Year 2003-2004 by the Assessing Authority. In Kesaria Tea Company [2002 (3) TMI 1 - SUPREME COURT] determined that the dispute between the Assessee and the Sales Tax Department was still going on.The dispute was whether the sales tax was at all payable. The facts of the present case are distinguishable. TAMP which is the Tarriff Authority for Major Ports had finally fixed the storage charges payable. The Assessee had taken shelter on the ground that the storage charges had not been finally quantified, but the liability to pay the same to Chennai Port Trust was not disputed and therefore the liability of Assessee to pay back to customers had ceased and had infact become the income in the hands of the Assessee and consequently, the reasoning given by the Tribunal that the Assessee is not liable since there was a dispute pending, no longer survived. The disputes have concluded. The Assessee had enjoyed the said amounts as its income collected but without paying it to the Chennai Port Trust. They were under obligation to be taxed on the said amount, as per Section 41(1) - Decided in favour of the Revenue
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