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TMI Blog1983 (11) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... in foodgrains, pulses, jaggery, etc., both on own account and on commission basis. For the assessment year 1975-76 the assessee claimed exemption in respect of Rs. 18,104.68 being the amount collected from the customers as charity at the rate of 10 ps., per bag or article. The assessee contended that the collections could not be included in the sale price, that it was specifically collected for purposes of charity and they do not form part of his trading receipts. But the assessing officer disallowed this claim on the ground that the said collections were made in the bills before the sale was completed and as part of the price paid and so he brought that sum to tax. 4.. Being aggrieved by the assessment order, the assessee filed an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot form part of the income of the assessee. It was found as a fact that such collection was specifically made for the purpose of charity. It was further observed that such realisations made by the assessee was held under an obligation to spend the same for the purpose for which it was collected. The question whether "dharmada" could form part of the turnover under the Sales Tax Act was not considered in that case. On the contrary that question was expressly left open. While dealing with the said question, the Supreme Court observed: "The two decisions on which reliance was placed by counsel for the revenue, namely, Poosarla Sambamurthi's case [1956] 7 STC 652 and Pandaria Pillai's case [1973] 31 STC 108 are clearly distinguishable and ina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... responding definition under the Tamil Nadu General Sales Tax Act held that if the mahimai collections made formed part of the aggregate amount for which the goods are sold by the assessee, it will fall within the definition of "turnover" unless there is any specific statutory deduction available either under the Act or under the Rules. 10.. In the instant case, as could be seen from the two sample bills which are reproduced below: Bill No. 18919 dated 16-4-1975: 2 bags Urid dhal Rs. 610 2 bags Moong dhal Rs. 610 ----------- Rs. 1,220 S.T. Rs. 18.30 Charity Rs. 0.40 -------------- Rs. 1,238.70 ------------- Bill No. 18952 dated 24.4.1975 3 bags Urid dhal Rs. 891.00 S.T. Rs. 13.36 Charity Rs. 0.30 H.C. Rs. 1.50 ----- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or this purpose. Both from the point of view of the seller as well as the purchaser, it is the aggregate amount mentioned in the bill that is in contemplation of both parties to the transaction, as the price paid, and received in the transaction and not the individual items mentioned in the bill. 12.. It is also suggested on behalf of the assessee that the purchaser having voluntarily made this contribution towards charity, it is not correct to treat it as a part of the assessee's trading receipts since it was never intended to be a part of the price and the contribution so made by the purchaser is for the sole purpose of charity. This argument has to be rejected in the view we have taken as to how the bill as a whole should be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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