Trading receipt ::
Court :
High Court
Brief :
Held by the Hon`ble Court that, mere fact that the assessee had given separate receipt to the costumers and made suspense account for excess price collected does not change the character of the transaction. Therefore the receipt is trading receipt.
Citation :
Travancore Sugars and Chemicals Ltd. Vs. Dy. C.I.T.
Trading receipt
Travancore Sugars and Chemicals Ltd. Vs. Dy. C.I.T. 06/23/2006
[2007] 292 ITR 609 (Ker)
Case Fact: Whether, price collected higher than fixed by government and kept in suspense account is as trading receipt?
Decision: Held by the Hon`ble Court that, mere fact that the assessee had given separate receipt to the costumers and made suspense account for excess price collected does not change the character of the transaction. Therefore the receipt is trading receipt.
CA.Saibaburao Nanduri
Published in Income Tax
Views : 125
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