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PETITIONER: PUNJAB DISTILLING INDUSTRIES LTD.
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX, SIMLA
DATE OF JUDGMENT: 24/11/1958
BENCH: SARKAR, A.K. BENCH: SARKAR, A.K. AIYYAR, T.L. VENKATARAMA GAJENDRAGADKAR, P.B.
CITATION: 1959 AIR 346 1959 SCR Supl. (1) 683 CITATOR INFO : R 1964 SC1709 (1,2,13) R 1973 SC 376 (13) R 1988 SC1263 (15) C 1989 SC1696 (9)
ACT: Income-tax-Distiller taking deposit refundable on return of bottles-Balance of deposits after refund, if trading receipt-Indian Income-tax Act (XI of 1922), S. 10.
HEADNOTE: The appellant, a distiller of country liquor, carried on the business of selling liquor to licensed wholesalers. Due to shortage of bottles during the war a scheme was evolved, where under the distiller could charge a wholesaler a price for the bottles in which liquor was supplied at rates fixed by the Government, which lie was bound to repay to the wholesaler on his returning the bottles. In addition to this the appellant took a further sum from the wholesalers described as ’security deposit’ for the return of the bottles. Like the price of the bottles these moneys were also repaid as and when the bottles were returned with this difference that the entire sum was refunded only when go% of the bottles covered by it had been returned. The appellant was ass...