TMI Blog1976 (3) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... by KHANNA J.-- This judgment would dispose of five Civil Appeals Nos. 1062 to 1066 which arise out of references under section 66(1) of the Indian Income-tax Act, 1922, made at the instance of the assessee-appellant. The assessee-appellant, Hukam Chand Mills Ltd., Indore, is a public limited company. It owns a textile mill at Indore and carries on the business of manufacture and sales of textiles. These appeals have a long history and are concerned with the income of the appellant during the calendar years 1941, 1942, 1944, 1945 and 1946, the relevant assessment years for which were 1942-43, 1943-44, 1945-46, 1946-47 and 1947-48. In those years the assessee effected sales of textiles to merchants in the then British India. Question w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We need not set out the finding of the Income-tax Officer. The Tribunal substantially agreed with the Appellate Assistant Commissioner. At the instance of the assessee, the following two questions were, inter alia, referred to the High Court : " (2) Whether, on the facts and in the circumstances of the applicants' case, the Tribunal was right in holding that in respect of the sales of Rs. 14,80,059 the profit was correctly determined by the application of rules 33 and one-third of the profits so determined could be said to accrue or arise in British India ? (3) Whether on the facts and in the circumstances of the applicants' case, the Tribunal was right in holding that a proportionate part of the profits determined on the sales groupe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal found that in respect of the sales in categories (a) and (b) amounting to Rs. 9,37,919, it was just and equitable to apportion 15 per cent. of the profits to have arisen and accrued in British India. Regarding sales in categories (c) and (d) for a total amount of Rs. 5,42,140 the Tribunal held that 7 1/2 per cent. of the profits could be said to have accrued and arisen in British India. As the profits were found to represent 31.12 per cent. of the turnover, the profits in respect of the turnover of Rs. 9,37,919 comprised in categories (a) and (b) were calculated at the rate of 4 1/2 per cent. (i.e., 15 per cent. of 31.12 per cent.) The profits in British India were thus found to be Rs. 42,200. Profits accruing and arising in British I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the contracts in British India. (c) Sales of Rs. 2,86,224 (i) The sales were made to British Indian merchants who went to Indore to negotiate and place orders. (ii) The orders were accepted at Indore. (iii) The contracts bore British Indian stamps. (iv) The customers signed the contracts in British India. (d) Sales of Rs. 2,55,916 (i) These sales were made to British Indian merchants on their or their brokers' personal visits to Indore. (ii) The offers were taken direct at Indore. (iii) Contracts for such sales were made in the same manner as stated hereinbefore. " The Tribunal also gave a finding that the assessee maintained an organisation in British India, that that organisation was interested in bringing to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
