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TMI Blog2013 (6) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... ascertain on the basis of the facts of each individual case as to whether the amount collected in the name of Dharmada is actually meant for a purpose which is charitable and is in fact spent for such a charitable purpose. This aspect has been clarified by the Supreme Court itself in a subsequent decision in the case of Commissioner of Income Tax (Central), Ludhiana and Others vs. Amritsar Transport Company Private Limited and Another (1993 (3) TMI 318 - SUPREME COURT). after taking into consideration the decision in the case of Bijli Cotton Mills (1978 (11) TMI 1 - SUPREME Court). The decision of the Division Bench of this Court in the case of Lilasons Breweries Pvt. Limited dated 16.7.1996 cannot be said to be bad law and the refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee the following alongwith another question of law was referred to this Court for its opinion:- "Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal was justified in holding that the sum of Rs.42,649/- in the A.Y. 1981-82; Rs.76, 870/- in the A.Y. 1984-85; Rs.1,18,179/- in the A.Y. 1985-86 and Rs.1,67,588/- in the A.Y. 1986-87 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 these assessment years ?" 3. It is submitted that the aforesaid question was answered by this Court by order dated 16.7.1996 passed in M.C.C No.668/1993 in the following terms:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not a revenue receipt and is, therefore, not liable to be included in the income of the assessee that is chargeable to tax. It is submitted that the aforesaid decision of the Supreme Court was not considered while deciding M.C.C No.668/1993 on 16.7.1996 and, therefore, the order passed therein deserves to be overruled and to be declared to be bad law. 5. The learned counsel for the revenue, per contra, submits that the decision of the Division Bench dated 16.7.1996 in M.C.C No.668/1993 was decided on its own facts and, therefore, cannot be found fault with. It is submitted that in the case of Lilasons Breweries Pvt. Limited (supra) this Court categorically held that the question referred to it was a pure question of fact and not a quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own by the Supreme Court in the case of Bijli Cotton Mills (supra). 7. At this stage, we are also constrained to observe that there can be no cavil about the law laid down by the Supreme Court in the case of Bijli Cotton Mills (supra) to the effect that an amount collected as Dharmada which is kept in a separate account and is utilized for charitable purposes, is not liable to be included in the income of the assessee. However, a mere statement to that effect on the part of the assessee is not sufficient and the revenue authorities, if so required, are entitled to ascertain on the basis of the facts of each individual case as to whether the amount collected in the name of Dharmada is actually meant for a purpose which is charitable and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties at the hearing of the reference. 6. The appeal is accordingly allowed, the judgment and order of the High Court is set aside and the application filed by Revenue under Section 256(2) is allowed. The Tribunal shall state the aforesaid question for the opinion of the High Court under Section 256(2) of the Act. No order as to costs." 9. Apparently, the decision in the case of Amritsar Transport Company (supra) was not brought to the notice of the Court while referring the matter to this Full Bench. We consciously refrain from saying anything more on this issue as it may prejudice the decision in the reference. 10. In conclusion, we are of the considered opinion that as the decision in the case of Lilasons Breweries Pvt. Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X
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