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TMI Blog1978 (4) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Tribunal in case of Rattanlal Krishanlal vs. ITO (1) held that the said Dharmada collection was held as a trust for the charitable purpose and as such was not exigible to tax in the hands of the assessee. He accordingly deleted the said addition. 4. Being aggrieved, Revenue has come up in appeal before us. the short point which falls for our consideration is whether the collections made by the assessee during the year under appeal are exigible to tax as the income in the hands of the assessee or not. It is clear from the facts on record that the assessee has maintained a separate Dharmada account in its books and the collections made according to the custom in respect of goods sold on commission have been credited to the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th regard to it is payable. In order to determine whether a particular receipt, by whatever name it is called, is or is not the income of an assessee, its real nature and quality has to be considered. If it was received under a custom, the answer to the question will depend on the nature of the obligation created by the custom. In this case, the constituents paid the Dharmada amount to the commission agent knowing that the same was being collected over and above the commission which was payable by them to the commission agent. this amount under the custom, had to be spent on charities for which purpose a fund had been established. Accordingly, when this amount reached the petitioner, it did not in truth reach him as income. Merely because i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AAC to allow reduction of a sum of Rs. 1,800 out of Rs. 2,200 disallowed by the ITO from the total claim of Rs. 6,158 made by the assessee as shop expenses. The Income-tax Officer disallowed the said amount without assigning any reasons. 6. The AAC in appeal found that the said expenditure related to the expenditure incurred towards providing messing and tea to customers, constituents as well as staff of the assessee firm. Applying the principles laid down by their Lordships of the Gujarat High Court in case of Addl. CIT vs. Patel Bros. Co. (3), the AAC held that the said expenditure was not in the nature of entertainment within the meaning of s.37(2B) of the Act. He, however, restricted disallowance to Rs. 400 to cover expenses of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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