IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITR No.40 of 1998 Date of decision: 10.12.2008 The Commissioner of Income Tax, Amritsar -----Applicant Vs. M/s Amritsar Transport Co.P Limited, Amritsar --Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON'BLE MR JUSTICE L.N.MITTAL Present: Ms.Naveender P.K.Singh, Sr.Standing counsel for the revenue. None for the assessee. Adarsh Kumar Goel,J. 1. The Income Tax Appellate Tribunal, Amritsar has referred the following question for opinion of this Court under section 256(2) of the Income Tax Act, 1961 (in short, ‘the Act’), arising out of its order dated 14.12.1984 in ITA No.130(ASR)/ 1984, in compliance of order of the Hon’ble Supreme Court dated 5.8.1997 in CA No.5334 of 1995 in the case of CIT v. Amritsar Transport Co.:- “Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the ITR No.40 of 1998 realisation of Rs.3,79,729/- as charity in the bills did not constitute a Trading Receipt and was not assessable to tax in the assessment year 1980-81?” 2. During assessment, the Assessing Officer assessed amount received by the assessee towards charity from its customers. The amount was credited to ‘Dharmada account’. On appeal, the CIT(Appeals) upheld the plea of the assessee, which view was affirmed by the Tribunal. The Tribunal relied upon judgment of the Hon’ble Supreme Court in M/s Bijli Cotton Mills Private Limited, 116 ITR 60, holding that amount received as charity could not be treated as income. 3. Learned counsel for the revenue fairly stated that the matter is covered against the revenue by judgment of this Court in CIT, Amritsar v. Gheru Lal Bal Chand, (1978) 111 ITR 134. 4. In view of above, the question referred is answered against the revenue and in favour of the assessee. 5. The reference is disposed of accordingly. (Adarsh Kumar Goel) Judge December 10, 2008 (L.N.Mittal) ‘gs’ Judge 2 ITR No.40 of 1998 3