Allahabad High Court
Jagdish Prasad Nigam vs Commissioner Of Income-Tax And Ors. on 1 August, 1996
Equivalent citations: [1997]228ITR112(ALL)
JUDGMENT
1. By this writ petition, under Article 226 of the Constitution of India, the petitioner who is an income-tax payer, challenges the levy of- tax to the tune of Rs. 3,462 and Rs. 1,483 for the assessment years 1976-77 and 1977-78, respectively.
2. We have heard Sri V. K. Barman, learned counsel for the petitioner, and Sri R. K. Agarwal, learned standing counsel for the respondents.
3. The aforesaid amounts happened to be income-tax levy on certain amounts realised by the petitioner from his customers as purported excise duty levied on the sale of poppy heads.
4. The levy of excise duty on the aforesaid goods was earlier quashed by this court and an appeal was stated to be pending in the Supreme Court.
5. It is settled that any such amounts realised by a dealer as a part of. price of goods are trading receipts and taxable as income, in view of the decision in the case of Chowringhee Sales Bureau P. Ltd, v. CIT [1973] 87 ITR 542 (SC).
6. The order of the assessing authority levying income-tax on the aforesaid receipts is legally justified. Further, against the assessments under the Income-tax Act, the petitioner has an alternative remedy to avail of the proper procedure provided under the Income-tax Act.
7. For the above reasons, we find no merit in the writ petition and the same is hereby dismissed.
8. The interim order dated August 10, 1982, is hereby vacated.