L.P. C NOS 3257 3265 OF 1979.
The Income Tax Officer called upon the respondent assessee to explain why the said amount should number be treated as its trading receipt.
These appeals and Special Leave Petition pertain to the very same assessee who is the respondent in Civil Appeal No.2456 NT of 1978.
This appeal is preferred against the judgment and order of the Punjab and Haryana High Court dismissing an application filed by the Revenue under Section 256 2 of the Income Tax Act.
The facts in these Special Leave Petitions are identical to the facts in Civil Appeal No.2456 NT of 1978, though the assessee is different.
From the Order dated 24.1.1979 of the Punjab and Haryana High Court in Income Tax Case No.50 of 1978.
This explana tion was number accepted by the Income Tax Officer who included the said amount of Rs.1,38,577 in the business income of the respondent.
His case was that this amount was never credited to his income account and it always companystituted a distinct account.
When called upon to explain the companylection of the said amount and its purpose, the assessee submitted a reply in writing stating as under It is customary in the Transport business to companylect charge DHARMADA, at the rate of Re.1 per Bilty.
For the reasons given hereinabove, leave is granted in S.L.P. C No.8353 of 1985 and all these appeals are allowed in the same terms as the appeal No.2456 NT of 1976.
However, says the companynsel, the true state of affairs is disclosed from the assessees own letter extracted in the assessment order.
The respondents case was that according to the custom prevailing in the transport business, he two companylected Re.1 per bilty for spending on charitable purposes.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
CIVIL APPEAL NO.3522 NT 179, 1368 NT 182, 5987 88 NT 190 AND S.L.P. C No.8353185.
3522 NT of 1979.
WITH A. NOS.
He stated that out of this amount companylected, a major portion was spent on charity and that the balance of Rs.8,871 was carried over in the separate account kept for DHARMADA.
The Judgment of the Court was delivered by P. JEEVAN REDDY, J. Civil Appeal No.2456 NT of 1978.
The assessee too is engaged in transport business.
The case of the Revenue briefly stated is to the following effect the assessee is a private Ltd. companypany engaged in the business of transport.
During the accounting period ending January 31, 1970 relevant to the assessment year 1970 71, the respondent companylected an amount of Rs.1,38,577 on account of DHARMADA.
