COMMISSIONER OF INCOME TAX, WEST BENGAL vs TOLLYGUNGE CLUB LTD.

The Supreme Court held that under Section 15B of the Income-tax Act, 1922, the surcharge collected by the assessee for local charities does not constitute income as it was earmarked for a specific purpose and did not belong to the assessee. The Court emphasized that a legally enforceable obligation existed to apply the surcharge to charity, thus diverting it before it could be considered income. The appeal was dismissed, affirming the lower courts' decisions that the surcharge was not a revenue receipt.