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1 - 7 of 7 (0.23 seconds)Commissioner Of Income-Tax vs Southern Explosives Co. on 17 March, 1999
8. The learned counsel appearing for the Revenue relied on the
decision in COMMISSIONER OF INCOME TAX v. SOUTHERN EXPLOSIVES CO. [2000] 2
42 ITR 107. The issue in that case is whether sales-tax collected can be
considered as a trading receipt or not. In the instant case, the issue is
whether the addition can be made under Section 43B of the Act or not. The
decision referred supra has no relevance and does not help the Revenue's
contention. The question of law raised by the Revenue deals only with the
question whether sales tax collected but not paid would form part of the
business or trading receipt. The question raised does not bring out the real
controversy in issue. It does not deal with the real issue. It is well
settled law that the jurisdiction of the High Court in a reference is in the
nature of advisory jurisdiction and only such issues can be and are answered
as arise properly on the facts and the questions referred to the High Court.
The Revenue in the appeal did not bring about the real controversy in this
case. In view of the above, we return the question referred to us unanswered.
Further, we have also noticed that the tax effect in the present case is very
negligible.
Section 4 in The Income Tax Act, 1961 [Entire Act]
India Carbon Ltd. vs Commissioner Of Income-Tax on 4 April, 1989
6. In the case on hand, the amount collected as sales tax was never
claimed as deduction by the assessee. Section 43B of the Act is not attracted
at all when the assessee has not claimed any deduction of the amount collected
by it. The Gauhati High Court, in the case of INDIA CARBON LTD. Vs. CIT,
[1993] 200 ITR 758, considered a similar issue and held as follows:
Section 256 in The Income Tax Act, 1961 [Entire Act]
The Income Tax Act, 1961
Section 28 in The Income Tax Act, 1961 [Entire Act]
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