12,80,428/ and Rupees 2,23,480/ were number rightly included in the total income of the assessee.
12,80,428/ were number rightly included as income of the assessee during the year and, therefore, they are deleted.
During the accounting year ending March 31, 1972 relevant for the assessment year 1972 73 the Agro Corporation sold a number of tractors imported through the Trading Corporation.
It is number disputed that the excess amount realised by the Agro Corporation for the relevant year was Rs.
Mr. O.P. Rana, learned Counsel appearing for the appellant has taken us through the judgment of the Tribunal and also of the High Court.
The sale price realised by the Agro Corporation from the sale of such tractors exceeded the total amount which it was entitled to realise from the customers in accordance with the ceiling fixed by the Trading Corporation.
The appeal filed before the Appellate Commissioner was dismissed.
The Agro Corporation under the terms of companytract were number to charge from the customers purchasers of the tractors price more than the ceiling price as approved by the Trading Corporation.
The Income tax Officer disallowed the deduction and added the same in the income returned by it for the year 1972 73.
700/ per tractor as assembling charges.
This appeal by Certificate granted by the High Court is by the Agro Corporation.
It is on these facts that the reference under Section 256 2 came to be made before the High Court for its opinion.
In the assessment proceedings, before the Income tax Officer, the Agro Corporation claimed deduction of the excess amount realised by them.
It is, however, number disputed that the refund was number made in the relevant year.
It is number disputed that the Government of India, on August 28, 1973, rejected the request of the Agro Corporation and permitted it to retain Rs.
The High Court reversed the findings of the Tribunal and came to the companyclusion that the Income tax Officer and the Appellate Commissioner had rightly disallowed the exemption.
15,45,504/ .
Further appeal filed by the Agro Corporation before the Tribunal was, however, allowed on the following reasoning After companysidering the above facts, we hold that on the basis of the mercantile system of accounting, followed by the assessee and the companytract with the S.T. C. dated 10 9 1970, the sum of Rs.
The High Court answered the question in the negative and against the assessee.
The appellant assessee Agro Corporation entered into a companytract with the State Trading Corporation of India Trading Corporation for the sale of tractors imported by the Trading Corporation.
On August 5, 1971, the Trading Corporation wrote to the Agro Corporation asking it to refund the excess amount realised by them from the customers.
Kuldip Singh, J. The question referred to the High Court Under Section 256 2 of the Income tax Act 1961 was as under Whether on the facts and in the circumstances of the case the Tribunal was legally companyrect in holding that the sums of Rs.
The Tribunal companycluded that the excess amount charged by the assessee was number its trading receipt.
