TMI Blog1991 (12) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... TO noticed the following details: (1) Central Sales-tax 911 (2) State Sales-tax 42,668 (3) State Sales-tax 6,300 . 49,879 After deducting the liability of Rs. 11,277 as appearing in the balance sheet of the last year, the ITO disallowed an amount of Rs. 38,602, purporting to do so under s. 43B on the grounds that sales-tax receipts constituted trading receipts. 3. In appeal, it was submitted on behalf of the assessee before the learned Dy. CIT(A) that as held by the Supreme Court in the case of CIT vs. Bijlee Cotton Mills P. Ltd. (1979) 8 CTR (SC) 1 : (1979) 116 ITR 60 (SC), the sales-tax collected by the assessee on behalf of the Govt. of Rajasthan which was separately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, in the position of a trustee only. He submitted that the provisions of s. 43B were not attracted and the enhancement of the amount of Rs. 11,277 was also bad. Reliance was also placed by him on the decision of the Supreme Court in the case of Bijlee Cotton Mills and on the following decisions: (i) CIT vs. Pyarilal Kasam Manji Co. Etc. (1992) 101 CTR (Ori) 247 and (ii) CIT vs. Shri Jagannath Steel Corpn. (1991) 191 ITR 676 (Cal) and the decisions relied upon in those decisions. On the other hand, on behalf of the Department, Shri A.S. Chaudhary, the learned Deptl. Representative, strongly relied upon the decisions of Delhi High Court in the case of Sanghi Motors vs. CIT (1991) 91 CTR (Del) 15 : (1991) 187 ITR 703 (Del) and Escorts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was merely explanatory, clarificatory or declaratory: (i) Sinkakollu Subba Rao Co. Ors. vs. Union of India (1988) 71 CTR (AP) 34 : (1988) 173 ITR 708 (AP); (ii) CIT vs. Govindraja Reddiar (1991) 187 ITR 417 (Ker); (iii) CIT vs. Shrikrishna Pharmaceuticals (1991) 188 ITR 316 (AP); (iv) Jamshedpur Motor Accessories Stores vs. Union of India Ors. (1991) 91 CTR (Pat) 19 : (1991) 189 ITR 70 (Pat); (v) CIT vs. P.J. Pillai (1991) 189 ITR 165 (Ker); (vi) CIT vs. Shri Jagannath Steel Corpn. (1991) 191 ITR 676 (Cal) and (vii) CIT vs. Pyarilal Kasam Manji Co. Etc. (1992) 101 CTR (Ori) 247 As against these decisions, a contrary view has been taken by the Delhi High Court in the case of Sanghi Motors vs. CIT and Escorts India Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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