- (1.) By way of present reference under Section 256(1) of the Income Tax Act, 1961 (for short 'the Act'), the Learned Income Tax Appellate Tribunal (for short 'the Tribunal') vide its order dated 15.03.1994 has referred the following substantial question of law for the opinion of this Court: "Whether on the facts and in the circumstances of the case the I.T.A.T. was right in law in holding that the amount of Rs.45,950/- and Rs.10,000/- representing security for gas cylinders in units Nos.I and II received by the assessee could not be treated as trading receipt and assessable as income for the assessment year 1983-84 -
(2.) The said question arises out of the facts that the assessee is a manufacturer of gas and supplies gas to the customers in cylinders. The assessee received security deposit from the customers for the supply of cylinders. The depreciation was claimed on the cylinders by the assessee. The question, which had arisen before the Assessing Officer, is; whether the amount of Rs.45,950/- and Rs.10,000/- in the hands of the assessee were in the nature of trading receipt or security deposit. The Assessing Officer took the view that the amount received by the assessee from the customers was part of the trading receipt.
(3.) The Commissioner of Income Tax (Appeals) accepted appeal preferred by the assessee holding that the amount received by the assessee was security deposit, as the cylinders remain the property of the assessee. The learned Tribunal in further appeal found that the assessee only sold the gas and not the cylinders and that the assessee has charged price for the sale of gas and that the money received as security was never part of the sale price and that the security money was refundable to the customers. The Tribunal relied upon its earlier orders in the assessee's own case for the assessment years 1981-82 and 1982-83.;