TMI Blog1981 (10) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... is as under: " Whether, on the facts and in the circumstances of the case, the sum of Rs. 7,894, being the collections made by the assessee on account of charity through sale bills, was liable to be assessed as income of the assessee liable to tax ? " The assessee, inter alia, carried on commission business in jaggery and collected an amount of Rs. 7,894 from various parties with which it dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1970] 76 ITR 194. Counsel have pointed out that the decision of the Allahabad High Court in the above case is now confirmed by the Supreme Court in CIT v. Bijli Cotton Mills (P.) Ltd. [1979] 116 ITR 60. In the said case, the Supreme Court has rejected the argument which was raised on behalf of the Commissioner that (i) the compulsory nature of the payment; (ii) the fact that the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t taken to or mixed up in any way with the trading account or the profit and loss account. The reason given by the ITO is clearly erroneous and not in accordance with the decision of the Supreme Court in Bijli Cotton Mills' case [1979] 116 ITR 60. Merely because the amount is collected through sale bills will not make it part of the assessable income of the assessee. The Supreme Court has also dea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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