LILASONS BREWERIES LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This reference to a Full Bench has been made to decide the correctness of the decision of a Division Bench of this Court in the case of Lilasons Breweries Pvt. Limited vs. Commissioner of Income Tax, in M.C.C. No. 668/1993 decided on 16.7.1996, in the light of a decision of the Supreme Court, in the following terms:-

(2.) It is submitted that the aforesaid question was answered by this Court by order dated 16.7.1996 passed in M.C.C. No. 668/1993 in the following terms:-

(3.) It is submitted by the learned counsel for the applicant that the decision in the case of Lilasons Breweries Pvt. Limited is not good law in the light of the pronouncement of the Apex Court in the case of Commissioner of Income Tax vs. Bijli Cotton Mills (P) Limited, 1979 116 ITR 60, wherein the Supreme Court has held that an amount collected as Dharmada and deposited in a separate account, is not a revenue receipt and is, therefore, not liable to be included in the income of the assessee that is chargeable to tax. It is submitted that the aforesaid decision of the Supreme Court was not considered while deciding M.C.C. No. 668/1993 on 16.7.1996 and, therefore, the order passed therein deserves to be overruled and to be declared to be bad law.