TMI Blog1960 (8) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, the Travancore Sugars and Chemicals Limited, purchased from the Government of Travancore the assets of the Travancore Sugars Limited, of the Government Distillery at Nagercoil and of the Government Tincture Factory at Trivandrum. The agreement dated the 18th June, 1937, annexure A to the statement of the case, deals with this purchase. Apart from the cash consideration recited in the agreement, clause 7 thereof provided for a further payment as follows : The Government shall be entitled to twenty per cent. of the net profits earned by the company in every year subject however to a maximum of rupees forty thousand per annum, such net profits for the purposes of this clause to be ascertained by deduction of expenditure fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for and on behalf of the said Messrs. Parry Co. Ltd., of the other part, whereby the said Government should sell and the company should purchase the assets including the lands of the Travancore Sugars Ltd., with the buildings, outhouses, machinery and other things attached thereto and more particularly described in the Schedule 'A' annexed to the said principal agreement, the factory known as the Government Distilleries situate at Nagercoil in South Travancore with lands, buildings, machinery and other things attached thereto and more particularly described in the Schedule 'B' annexed to the principal agreement and all the assets of the factory known as the Government Tincture Factory situated at Trivandrum and more parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows that the ten per cent. payable was not intended to have any impact on the assessment to income-tax. According to the department the payment under clause 7 will represent only a division of the earned profits of a common adventure between the assessee and the Government ; and the payment will not hence constitute an admissible deduction. In the view we have taken it is unnecessary to evaluate this contention or consider cases like British Sugar Manufacturers Ltd. v. Harris ( Inspector of Taxes) [1938] 1 All ER 149 ; [1939] 7 ITR 101 . A copy of this judgment under the seal of the High Court and the signature of the Registrar will be forwarded to the Appellate Tribunal as required by sub-section (5) of section 66 of the Indian Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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