Maharashtra State Financial Corpn. vs Dy. Cit on 8 September, 2006
We have also carefully examined the order of the Tribunal in the case of A.P. State Financial Corpn. v. Inspecting Assistant Commissioner (IT Appeal No. 2577 (Hyd.) of 1988) and the judgment of the A.P. High Court in the same case on a reference and we find that the A.P. High Court has set aside the order of the Tribunal and has restored the matter its file for re-adjudicating the issue in the light of the scheme and the modalities. Since this finding of the Tribunal, which was in favour of the assessee, was set aside by the A.P. High Court, it would not hold the field and does not render any assistance to the assessee. In the instant case, copy of the scheme is filed before us and from its careful perusal, we find that the assessee was under an obligation to collect the guarantee fees from its borrower and also to make the payment of the same to the corporation. If he does not make the payment to the corporation and utilized it for its own purpose, it would partake the character of business receipts of the assessee in the light of the judgment of the Apex Court in the case of Chowranghee Sales Bureau (P.)