NDLI: Commissioner of Income Tax, (central) Delhi, New Delhi Vs. Bijli Cotton Mills (p) Ltd., Hathras Distt., Aligarh

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Indian Income Tax A.ct. 1922 s. ~(3)(i) & s. 10(1)
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Indian Income-tax Act, 1922 (11 of 1922)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Indian Income Tax A.ct. 1922 s. 4(3)(i) & s. 10(1) - Assessee collected moneys on sale of goods under the head "Dharmada" - Kept the amount in a separate account - Created a trust - Utilised the money for charitable purposes - Whether amount realised could be regarded as assessee's income - "Dharmada" Trust whether void as vague and uncertain. Words & Phrases - "Dharmada" - meaning of. The assessee realised certain amounts of money on account of Dharmada (charity) from its customers on sale of yarn and bales of cotton which was its principal business. The amounts so realised were shown in a separate column headed '"Dharmada" in the bills issued to customers. Without taking them into its trading account, the assessee, credited these amounts to a separate account known as "Dhrmada" account. The Board of Directors of the company created a trust and declared that all moneys standing in the "Dharmada Account", and realised on this account in future should be treated as trust fund and utilised by the trustees for such religious and charitable purposes as may be decided by them. For the assessment years 1951-52, 1952-53 and 1953-54 the Income Tax Officer added the amounts realised under the head "Dharmada" to the assessable income of the assessee. The assessee's appeals to the Appellate Assistant Commissioner were dismissed. On further appeal the Appellate Tribunal held that the trust was void for vagueness and uncertainty and that the realisations partook of the character of trade receipts. On reference, the High Court held that the amounts were never the income of the assessee, that the assessee was merely acting as a clearing house for passing the amount to the trust, that the fact that it was a compulsory levy did not make it a trade receipt, that "Dharmada" was a customary levy prevailing in some parts of the country and where it was paid by the customers to a trading concern, the amount was not paid as a price for the commodity sold to the customer.In appeal to this Court it was contended on behalf of the Revenue that the realisations being a compulsory levy, they must be regarded as a part of the consideration or price of the goods purchased by the buyers and that gift for "Dharmada" was void for vagueness and uncertainty.
Judge	Hon'ble Mr. Justice V.D. Tulzapurkar
Neutral Citation	1978 INSC 227
Petitioner	Commissioner Of Income Tax, (central) Delhi, New Delhi
Respondent	Bijli Cotton Mills (p) Ltd., Hathras Distt., Aligarh
SCR	[1979] 2 S.C.R. 241
Judgement Date	1978-11-07
Case Number	1328-1329

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

Commissioner of Income Tax, (central) Delhi, New Delhi Vs. Bijli Cotton Mills (p) Ltd., Hathras Distt., Aligarh

Please Log-in to view this content

Commissioner of Sales Tax, U.p. Vs. Bijli Cotton Mills, Hathras

Commissioner of Income Tax, Bombay Vs. Finlay Mills Ltd.

Indore Malwa United Mills Ltd. Vs. The Commissioner of Income-tax (central) Bombay

Commissioner of Income-tax, U.p. Vs. Nainital Bank Ltd.

Commissioner of Income-tax, Madras Vs. Mahalakshmi Textile Mills Ltd.

Commissioner of Income Tax, West Bengal Vs. Birla Cotton Spinning & Weaving Mills Ltd. & Ors.

D.s. Bist & Sons, Nainital Vs. Commissioner of Income Tax, Delhi Central, New Delhi

Pushalal Mansinghka (p) Ltd. Vs. Commissioner of Income-tax, Delhi, Rajasthan & M.p.

Sutlej Cotton Mills Ltd. Vs. Commissioner of Income Tax, West Bengal Iii, Calcutta

Commissioner of Income Tax, (central) Delhi, New Delhi Vs. Bijli Cotton Mills (p) Ltd., Hathras Distt., Aligarh

Commissioner of Income Tax, (central) Delhi, New Delhi Vs. Bijli Cotton Mills (p) Ltd., Hathras Distt., Aligarh

Please Log-in to view this content

Similar Documents

Commissioner of Sales Tax, U.p. Vs. Bijli Cotton Mills, Hathras

Commissioner of Income Tax, Bombay Vs. Finlay Mills Ltd.

Indore Malwa United Mills Ltd. Vs. The Commissioner of Income-tax (central) Bombay

Commissioner of Income-tax, U.p. Vs. Nainital Bank Ltd.

Commissioner of Income-tax, Madras Vs. Mahalakshmi Textile Mills Ltd.

Commissioner of Income Tax, West Bengal Vs. Birla Cotton Spinning & Weaving Mills Ltd. & Ors.

D.s. Bist & Sons, Nainital Vs. Commissioner of Income Tax, Delhi Central, New Delhi

Pushalal Mansinghka (p) Ltd. Vs. Commissioner of Income-tax, Delhi, Rajasthan & M.p.

Sutlej Cotton Mills Ltd. Vs. Commissioner of Income Tax, West Bengal Iii, Calcutta

Commissioner of Income Tax, (central) Delhi, New Delhi Vs. Bijli Cotton Mills (p) Ltd., Hathras Distt., Aligarh