August 2019

Sections 2(24) and 4 of ITA, 1961 Income Meaning of Assessee collecting value-added tax on behalf of State Government Excess over expenditure deposited in State Government Treasury No income accrued to assessee

K.C. NARANG
Chartered Accountant

34.  Principal CIT vs. H.P. Excise and Taxation Technical Service Ltd.; 413 ITR 305 (HP)

Date of order: 7th December, 2018

A.Ys.: 2007-08 to 2011-12 and 2013-14

 

Sections 2(24) and 4 of ITA, 1961 Income Meaning of Assessee collecting value-added tax on behalf of State Government Excess over expenditure deposited in State Government Treasury No income accrued to assessee

 

The assessee-society was registered under the Societies Registration Act, 1860 on 27th August, 2002. Under the objects of its formation the assessee was entrusted with the responsibility of collection of value-added tax. The assessee maintained all the multi-purpose barriers in the State of Himachal Pradesh from where all goods entered or left the State in terms of section 4 of the Himachal Pradesh Value-Added Tax Act, 2005. A form was to be issued to the person declaring the goods at a cost of Rs. 5 per form till the levy was further enhanced to Rs. 10 w.e.f. 18th May, 2009. In terms of the bye-laws, the assessee used to deposit Re. 1 per declaration  form with the Government Treasury out of the Rs. 5 received till the year 2009; this was later enhanced to Rs. 2 after the tax amount was increased from Rs. 5 to Rs 10 per declaration form. The assessee had been showing the surplus of income over expenditure in its income-expenditure sta

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