Contingent deposits received from customers is income – SC

It is now well settled that in determining whether a receipt is liable to be taxed, the taxing authorities cannot ignore the legal character of the transaction which is the source of the receipt. The taxing authorities are bound to determine the true legal character of the transaction. In the present case, the assessee received Rs. 36,47,585/- in the assessment year 1998-99. As per the statement made by learned counsel for the assessee in Court on 6.09.2012 (which statement is ordered to be taken on record and marked “X”), the said sum of Rs. 36,47,585/- was not kept in a separate ...