1984 (2) TMI 35

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ry constitute income liable to tax for the assessment year 1970-71 ?" The assessee is a firm of four partners carrying on business as commission agents for the sale of jaggery. The ITO noticed that the assessee had collected a sum of Rs. 61,069 by way of rusum representing the amount as sales tax under the Andhra Pradesh General Sales Tax Act on the turnover relating to the sale of jaggery. The .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... it was held that the assessee had adopted the mercantile system of accounting and as such the liability arises in the year in which the sales are made. On this basis it was held that the amount constituted a trading receipt. It is contended by Mr. M. Suryanarayana Murthy, the learned counsel for the Department, that there is no material to show that the assessee was adopting the mercantile metho .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X