9911796707
TMI Blog1996 (4) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... lax Appellate Tribunal has erred in law in deleting from the income of the assessment year 1976-77, the addition of Rs. 26,045 made by the Income-tax Officer on account of potato storage charges actually received considering particularly the terms of the High Court's stay order ? " Briefly stated, the facts which are relevant to the point in issue are as under : Respondent No. 3 (hereinafter referred to as "the assessee") owns a cold storage. A tariff which a cold storage owner can charge from the growers for keeping the food items in his cold storage is fixed by the Government. The Government had fixed the tariff at Rs. 10 per bag of 85 kgs. of potatoes. Following an acute shortage of power in the State of Punjab, cold storage owners dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjudication by the High Court and, therefore, the same could not be treated as an assessable trading receipt of the assessee for the year in issue. The Income-tax Officer did not agree with this and assessed the same as a trading receipt of the year in the hands of the assessee. The Commissioner of Income-tax confirmed the additions and dismissed the appeal filed by the assessee. The assessee carried a further appeal to the Tribunal, which was accepted and it was held that the amount in question in the pledged state could not be treated as a trading receipt of the assessee, till the matter was decided by the High Court. The Income-tax Officer was directed to exclude the sum of Rs. 26,045 from the income of the assessee. The Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereafter by furnishing additional bank guarantee failing which the interim relief granted to the petitioner shall be entitled to begin charging at the contractual rate subject to the abovementioned maximum only after the initial bank guarantee of Rs. 10,000 has been furnished by them. " A perusal of this order shows that the amount had been received by the assessee and he deposited the same in the co-operative bank at Kapurthala by way of guarantee and its pledge with the Deputy Commissioner, Kapurthala, did not mean that he was no longer owner of the amount so deposited. The High Court had allowed charges at Rs. 13 per bag (which had been realised by the assessee) and, therefore, on the principle of the mercantile system of accountancy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's case [1975] 98 ITR 189 (SC) would not be applicable to the facts of the present case. In the present case, excess amount had been received by the assessee under the interim orders of the High Court and to ensure its recovery, the same was ordered to be pledged with the Deputy Commissioner, Kapurthala, in case the writ failed.
For the reasons stated above, we answer the question referred to us in the affirmative, in favour of the Department and against the assessee and hold that the Tribunal erred in law in deleting from the income of the assessment year 1976-77, the addition of Rs. 26,045 made by the Income-tax Officer on account of potato storage charges, actually received by the assessee. No costs. X X X X Extracts X X X X X X X X Extracts X X X X
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