TMI Blog1967 (7) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... hown separately in the bijak. It appears that the sums so collected were credited in a separate account in the assessee's books which was styled as the " Marwari Society Charitable Account ". During the relevant account year this amount stood at Rs. 9,809. In assessment proceedings for the year 1955-56, the assessee claimed that the amount of Rs. 9,809 was not part of the sale price of the bales sold by it and could not be treated as part of its income. The Income-tax Officer rejected the claim and included the amount in the income of the assessee. The assessee also claimed a deduction of a sum of Rs. 9,560 on account of repairs to the premises employed by it for the purpose of its business. The premises did not belong to the assessee. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it liked with the amount collected towards charity and that the amount could be spent according to the pleasure of the assessee. The Tribunal accordingly found that the amount was not held under any trust or binding obligation requiring the assessee to apply that amount to any charitable purpose. When the appeal for the assessment year 1955-56 came on for hearing before the Tribunal, the assessee was unable to place any further material before the Tribunal and to persuade it to a different view. Shri M. P. Mehrotra, learned counsel for the assessee, points out that the Tribunal applied the doctrine of res judicata and declined to go into the question whether the amount of Rs. 9,809 was liable to be included in the income of the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. The plea on the contrary is that the amount did not constitute part of the sale price and therefore, could not be included in the assessee's income. As to that we are clear in our minds that the amount having been realised by the assessee from its customers as part of and in connection with the sale transactions, it must be treated as income from its business. We are satisfied that the Tribunal was right in holding that the amount of Rs. 9,809 was liable to be included in the total income of the assessee. The assessee relies upon the circumstances that the question framed by the Tribunal assumes that the aforesaid sum of Rs. 9,809 was realised by the assessee from its customers towards charity for crediting to the account of the Marwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and the tiled roofs were replaced by cement roofs. We are unable to hold that the alterations effected by the assessee were made merely to bring about the reinstatement of the property to its original condition. Consequently, it cannot be, said that the alterations were merely in the nature of repairs. A case in point is that in Highland Railway Co. v. Balderston (Surveyor of Taxes) and decided by the Court of Exchequer (Scotland) in which the Lord President pointed out in his judgment : " Then when we come to the question of the alteration of the. main line itself, it must be kept in view that this is not a mere relaying of the line after the old fashion ; it is not taking away rails that are worn out or partially worn out, and renewi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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