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TMI Blog2010 (10) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... for respondent. It is a reference under Section 256(1) of Income Tax Act, 1961 by the Income Tax Appellate Tribunal, Indore Bench,Indore in R.A No.115 Indore/1994 by which the Tribunal has referred following question for the opinion of this Court for answer. "Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the sum of Rs.1,95,144/- received from the various customers through bills and credited to the Dharmada Account was in the nature of revenue receipt and, hence liable to be taxed as the income of the assessee during the assessment year 1987-88?" 2. Facts of the case are that M/s Lilasons Breweries Limited(hereinafter referred as the 'Assessee') is a limited company. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered the case in the case of Commissioner of Incometax vs. Bijli Cotton Mills (P) Limited (1979)116 ITR 60 SC in which the question as has been referred by the Tribunal has been decided. It is further submitted by Shri Shrivastava that in view of law laid down by the Apex Court, the question referred by the Tribunal remains academic as the controversy has already been decided by the Apex Court. 4. To appreciate the aforesaid contention, the order of the Apex Court is referred thus:- "15. Dealing with the factual aspects on the basis of which counsel for the Revenue sought to support the Tribunal's finding that no trust could be said to have been created by the customers it will be apparent from the above discussion that none of the aspe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the books in which every receipt was credited and payment made there out on charity was debited and the High Court has clearly found that these amounts were never credited in the trading account nor were carried to the profit and loss statement. Having regard to the position, it seems to us clear that the Tribunal's finding that no trust could be said to have been created by the customers in respect of the impugned amounts will have to be regarded as erroneous." The Apex Court held: " A gift to dharmada or dharmadaya both in common parlance as well as by the customary meaning attached thereto among the commercial and trading community cannot be regarded as void or invalid on account of vagueness or uncertainty, and it is, therefore, cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e additional payments over and above price were meant for being spent by the assessee for charitable purposes. Further, the fact that the assessee would be having some discretion as regard the manner in which and the time when it should spend the dharmada amounts for charitable purposes would not detract from the position the assessee held qua such amounts, namely, that it was under an obligation to utilize them exclusively for charitable purposes. It is true that the assessee did not keep these amounts in a separate bank account, but admittedly a separate dharmada account was maintained in the books in which every receipt was credited and payment made thereout on charity was debited and these amounts were never credited in the trading acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o some of the institutions. The said finding of the Tribunal purely relates to the appreciation of evidence and we find that the same does not give rise to any question of law or the question no.2 as referred to us. Under these circumstances, the second question is also answered against the applicant-assessee and in favour of the revenue." 6. In Misc.Civil Case No.668/1993 which was decided by the order dated 16.7.1996, the question of law referred to this Court were as under: "Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that the amounts received from the directors and shareholders of the company were in the nature of 'Deposits' within the meaning of 40A(8) of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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