| COURT: | Supreme Court |
| CORAM: | Deepak Gupta J, S. A. Bobde J, Vineet Saran J |
| SECTION(S): | 28, 4, 56 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Dharmada receipts, Diversion of income by overriding title |
| COUNSEL: | - |
| DATE: | April 9, 2019 (Date of pronouncement) |
| DATE: | April 10, 2019 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| If an amount (Dharmada, Charity) is paid at the time of the sale transaction for a purpose other than the price of the goods, it cannot form part of the transaction value. Such payment is not for the transaction of sale and cannot be treated as consideration for the goods. The fact that the payment is compulsory upon purchase does not mean that it is involuntary because the purchaser purchases the goods out of his own volition (All imp judgements referred) | |
When an amount is paid as Dharmada along with the sale price of goods, such payment is not made in consideration of the transfer of goods. Such payment is meant for charity and is received and held in trust by the seller. If such amounts are meant to be credited to charity and do not form part of the income of the assessee they cannot be included in the transaction value or assessable value of the goods
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