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PETITIONER: K. M. S. LAKSHMANIER AND SONS
Vs.
RESPONDENT: COMMISSIONER OF INCOME TAX AND EXCESS PROFITS TAX, MADRAS.
DATE OF JUDGMENT: 23/01/1953
BENCH: SASTRI, M. PATANJALI (CJ) BENCH: SASTRI, M. PATANJALI (CJ) MUKHERJEA, B.K. AIYAR, N. CHANDRASEKHARA BOSE, VIVIAN HASAN, GHULAM
CITATION: 1953 AIR 145 1953 SCR 1057 CITATOR INFO : R 1959 SC 346 (11,13,14,15,16) D 1964 SC1709 (10)
ACT: Excess Profits Tax Act (XV of 1940)-Rules under Schedule II, R. 2-A-Computation of average capital -Security deposit received from customers-Whether "borrowed capital"-"Deposit’ and "Loan"-Essentials of.
HEADNOTE: The assessees, who were the sole selling agents of a yarn manufacturing company and who distributed yarn to several constituents under forward contracts, kept two accounts for each constituent, viz., a "contract deposit account" and a "current yarn account", crediting the moneys which they received in advance from the constituents in the former account and transferring them to the current yarn account in adjustment of the price of the bales supplies then and there, that is to say, when deliveries were made under the contract. On the 5th. May, 1944, they decided to keep the advance amounts under a now heading "Contracts Advance Fixed Deposit Account" and to return the advance amounts in full after the completion...