TMI Blog1970 (4) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of the court was delivered by GROVER J.-- This is an appeal by special leave against a judgment of the Madras High Court rendered in its advisory jurisdiction in a case stated under section 66(1) of the Income-tax Act, 1922, hereinafter referred to as the "Act". The appellant was a non-resident individual. During the previous year ending April 12, 1956, relevant to the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere referred by the Tribunal: "(1) Whether the assessment made on the assessee, a non-resident, by including in his total income his share of foreign income of the resident firm of Messrs. K. V. Al. Rm. Rm. Ramanathan Chettiar, is valid in law ? (2) Whether the levy of the tax at the maximum rate is correct ?" The High Court answered the questions referred against the assessee on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... must be carried into the second proviso to section, 23(5)(a) relevant to a non-resident partner. It would, therefore, mean that this income arose wholly outside the taxable territories and had to be excluded by virtue of the operation of section 4(1)(c) of the Act. Under section 23(5) when the assessee is a registered firm and its income has been assessed the income-tax payable by itself shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ividually in the same way as before. There can be no manner of doubt that the unit of assessment was the registered firm and when it was assessed and its total income computed the individual partners were taxed tinder section 23(5)(a) on their respective shares of the firm's income. The Privy Council in Seth Badri Das Daga v. Commissioner of Income-tax took the view that a non-resident partner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Privy Council in Seth Badri Das's case but the discussion of all the relevant provisions by their Lordships is, with respect, so clear and cogent that we are unable to find any infirmity or flaw therein. It is not disputed that if that decision lays down the law correctly this appeal must fail. It is, therefore, dismissed with costs. Appeal dismissed. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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