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1954 (11) TMI 5 - SC - Income TaxWhether on the facts and in the circumstances of the case the profits derived by the assessee-company from sales made to European and American buyers arose outside British India ? Whether on the facts and in the circumstances of the case the profits derived by the assessee-company from sales made to European and American buyers were received outside British India ? Held that:- As at the earliest the property in the goods passed in London where the bill of lading was handed over to the buyers' bank against the acceptance of the relative bill of exchange. In the premises, the Appellate Tribunal as well as the High Court were quite correct in holding that the sales took place outside British India and, ex hypothesi, the profits derived from such sales arose outside British India. The first receipt of the price, therefore, as pointed out by the High Court, was by the Eastern Bank Ltd., London, on behalf of the sellers. There is no dispute that the balance of the price ascertained after weighment and assay and deducting the amount paid on the bill of exchange was similarly received in London by the Eastern Bank Ltd., London, on behalf of the assessee-company. The subsequent adjustment made in the books of the Eastern Bank Ltd., London, did not operate as a receipt of profits in British India. In our opinion the High Court correctly answered the second question also in favour of the assessee-company. Appeal dismissed.
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