GARO DEVI Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition seeks to challenge order passed by respondent on 21.1.1991 and also makes a prayer for grant of a direction to respondent No. 3 to stop the assessment proceedings of the petitioner with regard to an amount of departmental premium of sale price of kerosene Oil for the assessment year, 1989 -90.

(2.) THE only ground on which the petitioner wants the court to exercise its extraordinary powers under Article 226 of the constitution is that the issue whether the departmental premium constitutes income is disputed and the High Court being seized of the issue in writ petition No. 269/84 no assessment can be made on this premium till the final adjudication of the matter.

(3.) THE objection taken by the respondents is that the petitioner who is a kerosene oil dealer, during the accounting year relevant to the assessment year of 1989 -90 has collected premium aggregating to Rs. 1,21,200 only on behalf of the Food and Supplies Department on effecting sales. This premium instead of being deposited with the Food & Supplies Deptt. has been credited in his imprest account. This being a liability becomes disallowable u/s 43 -B of the Income tax Act, 1961 (hereinafter called the Act) & therefore, taxable.