- (1.) FOLLOWING question of law has been referred for the opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, 'the Tribunal) arising out of its order dated 17.3.1988 in ITA No.525/Chandi/85, for the assessment year 1981-82:- Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the amount of Rs.3,17,800/- representing security for gas cylinders received by the assessee could not be treated as trading receipt and assessable as its income for the assessment year 1981-82?
(2.) THE question has been gone into by the Madras High Court in CIT v. Madurai Soft Drinks Pvt. Limited, (2005) 276 ITR 607 and it was observed:- For the aforesaid reasons, we are of the firm opinion that the contention made on behalf of the appellant/Revenue that the "empty bottles return security deposits received from the agents and retailers are trade receipts, is liable to be rejected and the said amount is not taxable in the hands of the assessee. THE Tribunal was, therefore, right in holding that the security deposits received from the agents and the retailers are not taxable in the hands of the assessee." ITR No.69 of 1989 2 Accordingly, the question is answered against the revenue and in favour of the assessee. Reference is disposed of accordingly. (Adarsh Kumar Goel) Judge November 14, 2006 (Rajesh Bindal) 'gs' Judge;