TMI Blog2003 (12) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer with respect to optional service charges collected by the assessee covering a period of two years - In the instant case the amount that was received was only as charges for the services to be rendered in future. The services may be rendered or may not be rendered depending upon withdrawal of the money as and when the customer required. So, it is highly uncertain as to whether it wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g a period of two years. The assessee is a private limited company carrying on business in television sets. In the previous year ending March 31, 1983 and March 31, 1988 corresponding to the assessment years 1983-84 and 1988-89 respectively, the assessee had collected service charges, which was bifurcated into two items - one, as pertaining to this year and another pertaining to the subsequent a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Counsel for the assessee relied on the decision in the case of CIT v. Southern Explosives Co. [2000] 242 ITR 107 (Mad), wherein the true character of a receipt was vividly discussed, as to when it would amount to a trading receipt or otherwise. It was held therein that the true character of a receipt must be judged with reference to the reasons for the collection, and the liability for meeting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein it was held that the fact that the assessee had maintained its accounts on cash basis will not convert every kind of receipt as income unless the receipt could be held to have accrued as income because the assessee acquired a right to receive the said sum as income. In the instant case the amount that was received was only as charges for the services to be rendered in future. The servic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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