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TMI Blog1990 (7) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... omal Shorimal Sachdev Rangwalla (P.) Ltd. v. First ITO [1985] 14 ITD 248 (Bom.). The counsel for the assessee, Shri Chhajed, placed reliance on the Madhya Pradesh High Court decision in the case of CIT v. Kalani Asbestos (P.) Ltd. [1989] 180 ITR 55. 3. On this issue we have considered the rival submissions. In the case of law relied on by the assessee of MP High Court in Kalani Asbestos (P.) Ltd.'s case the question that was under consideration was "whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the amounts received from the directors and shareholders of the assessee private limited company does not represent deposits within the meaning of section 40A(8) of the Income-tax Act and no d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the instant case, the facts being identical, the Special Bench decision would squarely apply and these very features not existing in the case considered by the M.P. High Court, the said decision would have no applicability to the present case. In view of the above, we have to set aside the order of the CIT(A) on this issue and restore that of the assessing officer. 4. In the appeal by the assessee two issues have been raised. The issue relating to disallowance of Rs. 11,674 representing sales-tax liability was not pressed during the course of hearing and accordingly this ground is treated as dismissed for having been withdrawn. 5. The only other ground that survives relates to the receipt of Rs. 42,649 collected as Dharmada on sale bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses. He also provided details of the subsequent years where the expenses are said to be around 10% of the total annual collections. In the case of Chunnilal Onkarmal (HUF) the High Court found that the assessee though had collected Dharmada voluntarily from his customers, had been regularly contributing to charitable institutions and that such institutions were in the receipt of such amounts for the last 25 to 30 years. It was also found that a fixed percentage of the receipts was being spent on charitable purposes. It was further found that merely for the reason that in a particular year a lesser amount was spent on the charitable purpose, the object of collection of Dharmada does not get changed. In the instant case before us, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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