Held that from a bare perusal of sections 4A, 8A(2) and 29A of the U.P. Trade Tax Act, 1948, it was evident that the exemption from trade tax on turnover of sales was allowable to a class of entrepreneurs to encourage industrialisation. Sales tax, being an indirect tax, is ultimately passed on to the consumer. Once turnover of sales had been exempted, trade tax under the scheme of the 1948 Act, could neither be realised by the sellers nor could it be retained. There was no provision under the 1948 Act that empowered the assessee to withhold the amount of tax recovered, or that empowered the assessee to collect tax on exempted sales and to retain it as a subsidy. Once the amount had been received as the sale price, no part of it could be termed a capital receipt. Followed, Amrit Banaspati Co. Ltd. v. State of Punjab, (1992) 85 STC 493 (SC), \u00a0(1992) 2 SCC 411.\u00a0 (AY.2001-02 to 2005-06)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 28(i): Business income-Capital or revenue-Subsidy-Exemption from sales tax granted by State Government-Assessable as revenue receipt.[S. 4, The U.P. Trade tax Act, 1948, S. 4A, 8A(2) 29A]] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-60253","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fFP","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=60253"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60253\/revisions"}],"predecessor-version":[{"id":60254,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/60253\/revisions\/60254"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=60253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=60253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=60253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}