9911796707
TMI Blog1985 (9) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... and confirmed the assessment. Against his order the present appeal has been filed. In the original grounds, the assessee omitted to take the ground relating to the addition of Rs. 20,218. It, however, took the following general ground : "Because the entire order of the Commissioner (Appeals) is contrary to law and facts of the case." 3. Before us, the learned counsel for the assessee, while referring to the above ground took the following additional ground : "Because both the officers below have erred in treating Rs. 20,218 as revenue receipt on account of one-third sales of molasses carried to the reserve account for maintenance and construction of pucca pits for storing molasses, under the orders of the Excise Commissioner." It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 being subject of the additional ground on merits. The assessee has been manufacturing sugar. Its activities are governed by the U.P. Sheera Niyantran Adhiniyam, 1964. Section 10A of this Adhiniyam reads as under : "10A. Funds for regulation of adequate storage facilities.---Every occupier of a sugar factory shall, from the price prescribed in the Schedule referred to in sub-section (1) of section 10 for different grades of molasses, place in a separate fund the amount mentioned below or such other amount as the State Government may notify in that behalf for being utilised for provision and maintenance of adequate storage facilities in accordance with general or special orders issued from time to time by the Controller : Grade I molas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... These submissions were rejected by the ITO for the following reasons : "1. The learned counsel has not been able to show the order of the Excise Commissioner for maintenance and construction of pucca pits. 2. The assessee has shown the item in part III of return only in the return filed in compliance with the notice served under section 148. There was no such remark in the original return to substantiate its claim on this point, hence, claim cannot be entertained. 3. As already discussed above the sale proceeds of molasses are the revenue receipts. A portion of the sale proceeds so transferred to reserve fund account cannot alter the nature of proceeds. Accordingly, the same is taxable being revenue receipts." His view was upheld b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before us. In our opinion, the assessee cannot succeed in the present appeal. Section 10A merely directs that a particular amount will be set apart to be utilised for provision and maintenance of adequate storage facilities. The amount was to be spent in accordance with general or special orders issued from time to time by the Controller of Molasses. However, the godowns continued to remain the property of the assessee. It only means that the assessee was directed to spend a part of its income in a particular manner. That does not mean that there was any overriding charge in favour of a third party or that the assessee acted as a trustee of the fund. A trust can be only in favour of a third person and not in favour of one-self. Admittedly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a trustee on behalf of the charity or charitable institutions. The amount was also separately charged from the constituents for which a separate ticket was issued. The Supreme Court held that the only requisite which must be satisfied is that there should be "purposes independent of the donee to which the subject-matter of the gift is required to be applied and an obligation on the donee to satisfy those purposes". There is no such independence in the present case. We, therefore, hold that the above decision of the Supreme Court is not applicable to the facts of the present case. Considering all the above circumstances, we are of the opinion that the taxation of the amount of Rs. 20,218 is in order and is confirmed. 12. The next contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
