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TMI Blog2004 (8) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee had no right to the amount so realised and was the subject matter of the final orders which may be passed by the apex court. Thus, the amount did not accrue to the assessee and, therefore, it cannot be treated as a trading receipt for the assessment year in question. - - - - - Dated:- 13-8-2004 - Judge(s) : R. K. AGARWAL., K. N. OJHA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(1) of the Income-tax Act, 1961, hereinafter referred to as the Act, for opinion of this court: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the amount of Rs. 1,00,298 had not accrued to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 298 was not accepted by the assessee nor this amount was deposited in the saving bank account in pursuance of the order of the Supreme Court. He, therefore, added this amount of Rs. 1,00,298 as the income earned by the assessee during the year under consideration. The assessee challenged the addition before the Commissioner of Income-tax (Appeals), Kanpur, who deleted this addition following the order dated March 26, 1977, of the Appellate Tribunal in I.T.A. No. 2126 (All) of 1975-76. He held that the amount of Rs. 1,00,298 was not taxable in this year as the assessee had no right to the sale proceeds in this year. Aggrieved by this order of the Commissioner of Income-tax (Appeals), the Department came up in appeal before the Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of K.C.P. Ltd. [2000] 245 ITR 421 was considering the case where a sugar mill had challenged the fixation of levy price of sugar by the Government of India. By an interim order dated March 31, 1970, passed by the Andhra Pradesh High Court the operation of the said notification had been stayed. It has further passed a mandatory order permitting the petitioners therein to sell sugar at the rate prevailing prior to the said notification pending further orders on the petition. The apex court found that the excess amount realised by the sugar company was in the ordinary manner of its business activities, the amount was retained by the assessee as price of the sugar sold by it though the right of the appellant-company to realise the amount wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was required to deposit the entire amount of excess price with the district magistrate in a bank account specifically opened for that purpose and the pass book had to be pledged with the district magistrate. In this view of the matter, the assessee had no right to the amount so realised and was the subject matter of the final orders which may be passed by the apex court. Thus, the amount did not accrue to the assessee and, therefore, it cannot be treated as a trading receipt for the assessment year in question. In view of the foregoing discussions, we answer the question of law referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue. However, there shall be no order as to costs. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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