1993 (2) TMI 2 - SC - Income Tax

Whether the sum collected by the assessee towards rusum on commission sales of jaggery constitutes income liable to tax -Whether sum are allowable as admissible deductions as sales tax payable by the assessee under the Andhra Pradesh General Sales Tax Act 1957- First question is answered in the affirmative that is in favour of the Revenue - second question is answered in the affirmative that is in favour of the assessee

Summary

The Supreme Court allowed the appeals in part, answering one question in favor of the Revenue and the other against the Department. The assessee, a commission agent in jaggery, collected amounts under the name "rusum" for sales tax disputed during the accounting year. The Court held that the collection constitutes business receipt and is deductible as an expenditure for the assessment year 1968-69. The High Court's answer on question No. 2 was set aside.