Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 1953 (1) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1953 (1) TMI 3 - SUPREME COURTWhether, in the facts and circumstances of this case, the Tribunal was right in holding that the income, profits and gains derived from the sale of salt in British India are assessable to tax as income, profits and gains received or deemed to be received under Section 4(1)(a) ? Whether, in the facts and circumstances of this case, the Tribunal was right in accepting the contention of the Department that the income accrued or arose or is deemed to accrue or arise in India and is assessable to tax as contemplated by Section 4(1)(c) ? Whether the Tribunal was right in the circumstances of this case in rejecting the contention of the assessee (applicant) that the income, profits and gains are chargeable to tax from the sale of salt in British India under Section 42 only ? Held that:- High Court correctly answered Question (1) in the affirmative so far as income-tax is concerned. Excess profits tax, however, cannot be levied on this basis. Question (2). The Tribunal was wrong in accepting the contention of the Department that the income accrued or arose in India. The Tribunal did not hold that the income is income which should be deemed to accrue or arise in India. The part of the question which states that the Tribunal did so is not in accordance with fact. We find that the income, profits and gains must be deemed to have arisen or accrued in India so far as excess profits tax is concerned and that Section 42(3) of the Income-tax Act applies to the levy of excess profits tax by virtue of Section 21 of the Excess Profits Tax Act. Question (3). The Tribunal was right in rejecting the contention that the income, profits and gains are chargeable to tax under Section 42 only. They are also chargeable to income-tax as falling within the purview of Section 4(1)(a) of the Income-tax Act as income received in India on behalf of the assessee company. In such a case Section 42 of the Income-tax Act would have no application. Appeal dismissed.
|