Sale of fly ash constitute taxable business income

In a dispute concerning taxability of fly ash sale proceeds, the Tribunal ruled that receipts arising from sale of a by-product of business operations accrue as income at the point of sale. 

The credit of such receipts to a designated fund pursuant to government notification was held to be a case of application of income, not diversion by overriding title. The ruling clarifies that accounting treatment or earmarking of funds cannot alter the intrinsic character of a revenue receipt.