1953 (10) TMI 2 - SC - Income Tax

Whether in the circumstances of the case and on a true construction of Section 4(1)(b) and Section 14(2)(c) of the Indian Income-tax Act, the sum of ₹ 2,20,887 was in law assessable to tax ?

Held that:- On the finding of the Income-tax authorities that the 582 bars of silver lying at Bikaner had not been really sold but remained part of the unsold stock of the firm's business at the end of the accounting year, the whole of the profits of that year must be taken to have accrued or arisen at Calcutta where the business was carried on, no part of that business having admittedly been transacted at Bikaner.

We agree with the High Court that the question referred should be answered in the affirmative though on different grounds. Appeal dismissed.