9911796707
TMI Blog2000 (2) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... n this ground may kindly be deleted." 2. During the year under consideration, the Government of J K State vide Notification No. DFS/SSGA/23-2/II, dt. 24th March, 1983, through the Director of Food Supplies, Srinagar, issued order by which the selling price of kerosene oil was fixed at different rate slabs for the purpose of retail sale price. Similarly, the retail sale price in Muffa oils is fixed at Rs. 2.20 per litre. The State Government fixed the price including departmental premium and the stockists were directed to deposit the departmental premium to the (sic) J K Government. The power of fixing essential commodities is conferred on the Government by s. 3 of the Essential Commodities Act, 1955, read with Government of India, Mini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not given any reasons for making the addition. I, therefore, uphold the action of the ITO in making the impugned addition of Rs. 1,89,527 and reject the claim of the appellant." 5. The learned counsel of the appellant pleaded that for the asst. yrs. 1985-86 and 1986-87, the learned CIT(A) has given decision in favour of the appellant. 6. We have gone through the record and considered the submissions made by both the sides. The first issue to be discussed in this case is whether or not additional premium is tax. For this, one has to analyse the Essential Commodities Act, 1955, s. 3. The Act gives powers to the Government to control production, supply, distribution of essential commodities and the distribution of the commodities to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear that the departmental premium is to be paid by the appellant after charging the same on the sale price to the customers. So far as the assessee is concerned, this becomes the cost price and purchase price for purchase of the material in which he is dealing, which is quite clear from the notification issued by the Government Notification dt. 18th March, 1981. The notification clearly indicates that the dealer has to charge sales-tax and surcharge separately on the basic rate. He has to charge octroi, wholesale commission, retail commission and departmental premium. After making the sale the normal transaction will be credited to the trading account and all various expenses will be debited and part of the expenses will be departmental pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government. The logical meaning will be that the payment should have some similarity regarding tax, duty, cess or fee. This is moreso because one has to understand the purpose of bringing s. 43B in the IT Act. The basic purpose was to stop disadvantage to the State and the Central Government by accounting principles which made distortion in the tax collection. The liabilities were not paid to the Government and same were claimed from the gross profit which ultimately resulted into lower payment of income-tax. The State and Central Government itself are indulging in trading activities and control the vast natural resources. It will be rather unreasonable and illogical to bring payment for purchase of raw material and services him the Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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