K.RAVIRAJA PANDIAN,J. - (1.) THE question referred is, "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the increase in the credit balance in the deposit on containers account should not be regarded as partaking the character of the trading receipts of the assessee ?"
(2.) THE assessee is a company engaged in the manufacture of soft drinks in the name of 'Torino'. In the assessment proceedings, the AO found that there was increase in the security deposit in respect of bottles and crates, and the assessee also has claimed depreciation in respect of those bottles and crates and on that score, the AO treated the receipt as a trade receipt. On appeal, the CIT(A) confirmed the same. However, the Tribunal rejected the views taken by the AO and following the earlier decision of the assessee's own case has accepted the contention of the assessees. Hence, the assessment now referred to.
(3.) THE question similar to the one of the present case has been considered by this Court in the case of CIT vs. Madurai Soft Drinks (P) Ltd. (2000) 241 ITR 229 (Mad) and this Court held that the deposit so received by the assessee required to be returned as and when the bottles were returned and the finding of the Tribunal that such deposit did not constitute the income of the assessee as correct, and thereby answered the question in favour of the assessee, and against the Revenue.;