JUDGMENT : S.C. Mohapatra, J. - Pursuant to the application of the assessee u/s 256(2) of the Income Tax Act, 1961 (for short " the Act "), a statement of case was called for on the following question : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the amount kept under suspense account was the assessee's trading receipt and, therefore, includible in the total income of the assessee ? " 2. The assessee is a partnership firm which carries on the business of sale and purchase of chillies. During the assessment year 1976-77 relevant for the accounting year ending on 31st March, 1976, it collected various amounts from the purchasing dealers of chillies belonging to Andhra Pradesh for payment of tax under the Orissa Sales Tax Act, 1947. The collected amount of Rs. 89,386 was, however, not paid to the Government, but was kept under a suspense account. Treating it to be a trading receipt and as such part of the total income, the assessment was concluded relying upon the decisions of the Supreme Court in Chowringhee Sales Bureau (P) Ltd. Vs. Commissioner of Income Tax, West Bengal, and Sinclaire Murray and Co. (P) Ltd. Vs. The Commissioner of Income Tax, Calcutta. On appeal by the assessee, the Appellate Assistant Commissioner confirmed the order of assessment relying upon the decision of the Madras High Court in Commissioner of Income Tax Vs. E.A.E.T. Sundararaj. Before the Appellate Tribunal in second appeal, the assessee submitted that its liability to pay purchase tax on chillies was in dispute with the sales tax authorities and, therefore, though the amount in dispute was collected from the Andhra parties, the same was kept in its suspense account as a precautionary measure to meet the contingency of demand by the State Government from the assessee. In view of the fact that the amounts collected were not kept in suspense account in the names of the parties from whom the amounts, were collected and were being mixed up with the funds of the assessee, the Tribunal relied upon the decisions of the Supreme Court referred to earlier and held that the amounts were nothing but trading receipts and that accordingly on such amounts the assessee is liable to pay the tax. 3. 3. On the facts found by the Tribunal, there can be no two opinions that the decisions of the Supreme Court would be directly applicable. In Sinclaire Murray and Co. (P) Ltd. Vs. The Commissioner of Income Tax, Calcutta the Supreme Court categorically held that the amount collected by the assessee as sales tax constituted its trading receipt and had to be included in its total income. Sales tax and purchase tax are levied under the Orissa Sales Tax Act in respect of various commodities as notified by the State Government. Therefore, the decisions of the Supreme Court having categorically stated that the amount of sales tax collected would be trading receipt to be included in the total income of the assessee for being assessed, the principle would be applicable to the purchase tax also and the answer is to be given against the assessee. 4. In the result, the reference is answered against the assessee. No costs. Agrawal, C.J. 5. I agree.