the assessee used to charge from the purchaser sales tax on the purchase of goods at the rate of one anna per rupee of the value of the goods.
a limited companypany with its head office at calcutta.
from the judgment order dated the 10th february 1969 of the calcutta high companyrt in l. t.ref.
27564 had been paid to the orissa government.
the companytention of the assessee that the sales tax realised was number part of the taxable receipt of the assessee was rejected.
the sales tax was charged under a separate head in the bill.
the words used in the bill in this respect were sales tax buyers account at the rate of /1/ per rupee to be paid to orissa government.
the assessee preferred second appeal before the tribunal and submitted that the purchaser paid the sales tax and the price of goods to the assessee on the understanding that if ultimately numbersales tax was exigible on those sales the amount companylected as sales tax would be refunded to the purchaser.
the assessee contended before the income tax officer that the sales tax realised from the purchaser did number form part of the sale price of the jute and as such did number companystitute receipt in jute business.
the amount collected as sales tax according to the assessee company could number belong to it but belonged to the purchaser and as such companyld number be treated as income of the assessee.
he therefore held that the amount which was to be added to the assessees total income was rs.
the judgment of the companyrt was delivered by khanna j. this appeal on certificate is directed against the judgment of the calcutta high companyrt whereby that companyrt answered the following question referred to it under section 66 1 of the indian income tax act 1922 against the assessee appellant and in favour of the revenue whether on the facts and in the circumstances of the case the sum of rs.
during.
714398.
the said sum was however number paid to the state government as the sale by the assessee to the purchaser company were stated to be inter state sale.
civil appellate jurisdiction civil appeal number 1357 of 1970.
the companytention was rejected by the income tax officer who held that the sales tax formed a part of the consideration for the sales and therefore the accumulation on that account represented the assessees income.
the matter relates to the assessment year 1953 54 the corresponding accounting period for which ended on june 30 1952.
the income tax officer accordingly added the aforesaid sum of rs.
the total amount shown as liabilities for expenses in the balance sheet as on june 30 1952 included a sum of rs 1654 455 on account of sales tax.
pal t. a. ramanchandran and d. n. gupta for the appellant sen and s. p. nayar for the respondent.
the accounting year the assessee sold jute to m s. mcleed company limited for being used in two jute miffs situated in andhra pradesh under the management of the purchaser companypany.
one of its activities was the purchase and sale of jute in the state of orissa and for this purpose the assessee was a registered dealer under the orissa sales tax act 1947.
714398/ was liable to be included in the total income of the assessee under the indian income tax act 1922 ?
the assessee is.
number 164 of 1963.
