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

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

Date of order: 7^th 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 27^th 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. 18^th 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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