1986 (12) TMI 18

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..... , 1961 (for short " the Act "), statement of case was called for on the following question : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the amount kept 'under suspense account was the assessee's trading receipt and, therefore, includible in the total income of the assessee ? " The assessee is a partnership firm which carries on t .....

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..... decision oil the Madras High Court in CIT v. E. A. E. T. Sundararaj [1975] 99 ITR 226. Before the Appellate Tribunal in second appeal, the assessee submitted that its liability to pay purchase tax on chillies was in dispute with the sales tax authorities and, therefore, though the amount in dispute was collected from the Andhra parties, the same was kept in its suspense account as a precautionary .....

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..... d its trading receipt and had to be included in its total income. Sales tax and purchase tax are levied under the Orissa Sales Tax Act in respect of various commodities as notified by the State Government. Therefore, the decisions of the Supreme Court having categorically stated that the amount of sales tax collected would be trading receipt to be included in the total income of the assessee for b .....

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