TMI Blog1982 (5) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee took the stand that the amount could not be taxed as it maintained the accounts under mercantile system and that it had to pay the balance either to Krishi Utpadan Mandi or the constituents from whom it was realised. The ITO brought this amount to tax. On appeal, the AAC took the view that the liability to pay Krishi Utpadan Mandi Tax had accrued in the assessee's case. He found that the assessee had received various notices of demand from Krishi Utpadan Mandi Samiti, Agra. It clearly indicated that the liability bad accrued and ascertained. The addition of Rs. 29,029 was consequently deleted. On appeal by the Department the Income-tax Appellate Tribunal took the view that the recovery of market fee cannot form part of the trading re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... market fee so realised with the Market Committee in accordance with the directions of the Committee issued in this behalf. (ii) If the specified agricultural produce is sold directly by the seller to the consumer, the market fee shall be realised by the servant of the Market Committee authorised by it in this behalf...." It is apparent from sub-r. (2)(i) of r. 68 that the commission agent is accountable for the recovery which he makes from the seller in sale voucher in Form No. VI. The commission agent is not liable to deposit any other amount with the Market Committee. He is not liable to deposit the amount of market fee on the total sales which he makes. Market fee, only on those sales, which have been recorded in sale voucher in Form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, who, even if he were to collect it, does so, not as part of his income, but for and on behalf of the person to whom it is payable." The test laid down by the Supreme Court was applied in determining the " nature of the contributions " made towards dharmada fund maintained by the assessee in a Full Bench decision of this court in Thakur Das Shyam Sunder v. Addl. CIT [1974] 93 ITR 27. Under a custom prevailing in the market, the commission agents realised dharmada from their constituents. This amount was collected over and above the commission payable to the commission agents. It had to be spent on charities. This court took the view that the amount so collected was not received by the assessee as its income and could not be broug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of the surcharge of eight annas for local charities. The question was whether receipts on account of the surcharge were to be treated as the assessee's income. Confirming the decision of the Tribunal and the High Court, the Supreme Court held that the surcharge was not a part of the price for admission but was a payment made for the specific purpose of being applied to local charities. Since a resolution was passed at the general meeting for levying the surcharge for local charities and pursuant to this resolution the surcharge was paid by the race-goers and received by the respondent for the specific purpose of being applied to local charities, the surcharge, when paid, was clearly impressed with an obligation in the nature of trust fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited the amount received as sales tax under the head " Sales tax collection account " did not make any material difference. The Supreme Court further observed that it was the true nature and quality of the receipt and not the head under which it is entered in the account books as would prove decisive. If receipt is a trading receipt, the fact that it is not so shown in the account books of the assessee would not prevent the assessing authority from treating it as trading receipt. Under the sales tax law the dealer is liable to pay sales tax on his total turnover irrespective of the fact whether or not he has recovered sales tax from the customers. It is for the dealer to chalk out the scheme to recover the sales tax from the constituents. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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