Tribunal held that it was held that the Assessee/buyer had entered into agreements with three sugar factories which stipulated that in case the purchased sugar under the agreement is not exported for any reason, beyond the control of exporter, the buyer would then have the right to sell the sugar in domestic market. However, seller shall demand the difference towards additional realization and the buyer / exporter agreed for the same. Pursuant to the agreement, sugar which was picked up by the Assessee and in view of low quality of sugar, it could not be exported and it was sold in the open market. The Assessee in such scenario claimed to have sold the sugar at the rates lower than rates prevailing in the market in order to meet the demands of payment by the sugar factories. The average rate at which the Assessee sold the same was at Rs.1233.50/- per quintal. However, ITAT had come to a finding that the sale price of sugar is to be adopted at Rs.1290/- per quintal. The Assessee claimed that extra amount arising on sale of sugar out of export quota of sugar is diverted by source, in view of the terms agreed upon by the assessee with the sugar factories. The question which arises is whether the amount reaches the hands of Assessee as its income and hence, is taxable in the hands of Assessee. In this regard, the ITAT has applied the principles laid down by the Supreme Court in CIT v. Sitaldas Tirathdas, holding that where there is an obligation to pay and it has to be diverted by overriding title, it could not be treated as income and that the difference in profit is not to be included as income in the hands of Assessee. (ITA No. 694/PUN/2012 dt. 18.08.2017) (A.Y. 2002-03)