32.986 was a part of the appellants income of the same nature as was the companymission received by it on the auction sales.
the owners of the goods who sent them to the appellant for being auctioned had received only their sale price less the amount charged by the appellant as sales tax from the purchasers.
in respect of the sales effected by the appellant as auctioneer it realised during the year in question in addition to the commission rs.
the said sum was accordingly added to the appellants income.
the appellant assessee is a private limited companypany dealing in furniture.
168 nt of 1969.
appeal by special leave from the judgment and order dated june 181968 of the calcutta high companyrt in income tax refe rence number 77 of 1966.
the total balance standing to the credit of this account since 1946 up to the end of the relevant previous year stood at rs.
sen and b. p. maheshwari for the appellant.
the said entry relates to taxes on the sale of goods and on advertisements.
s. nariman additional solicitor general t. r. rama chandran b. d. sharma and r. n. sachthey for the respondent gobinda mukhoty g. s. chatterjee for intervener for the state of west bengal advocate general west bengal .
the entry in so far as it relates to taxes on sale of goods companyresponds to entry 54 in list 11 of the seventh schedule of the companystitution.
civil appellate jurisdiction civil appeal number.
in the earlier years these collections were number added to the appellants income.
the appellant preferred appeal to the appellate assistant commissioner who took numbere of the fact that the appellant had number treated the amount as part of its income.
the bengal act was enacted by the bengal legislature in 1941 in pursuance of the powers companyferred by entry 48 of list ii of schedule vii of the government of india act 1935.
the appellate assistant companymissioner referred to a decision of a single judge of the calcutta high companyrt in a writ petition filed by the appellant against the state of west bengal.
the judgment of the companyrt was delivered by khanna j. this appeal by special leave is directed against the judgment of calcutta high companyrt whereby that companyrt answered he following question referred to it under section 66 1 of the indian income tax act 1.922 in the negative and against the assessee appellant whether on the facts and in the circumstances of the case the sum of rs.
it also acts as an auctioneer.
the income tax officer held that the sum of rs.
271698.
32986 had been validly excluded from the assessees business income for the relevant assessment year the matter relates to the assessment year 1960 61 for which the relevant previous year ended on march 31 1960.
32986 as sales tax.amount was credited separately in the books under the sales tax companylection account.
for the year in question however the income tax officer held that the said sum was in reality a portion of the sale price itself because the sales tax was number the liability of the purchasers of the goods but was the liability of the sellers of the goods only.
