1953 (1) TMI 5 - SUPREME COURT

Whether the sums of ₹ 12,68,480 and ₹ 4,40,878 were sale proceeds of the goods sold by the assessee to merchants in British India or were debts due by the said merchants ?

Whether if they were sale proceeds, they were received in British India ?"

Whether the profits of the assessee's business are included in the sums of ₹ 12,68,480 and ₹ 4,40,878 ?

Held that:- The High Court was right in holding that the two sums of ₹ 12,68,480 and ₹ 4,40,878 were the sale proceeds of the goods sold and delivered by the appellant to merchants in British India, that they were received by Messrs. Jagmohandas Ramanlal & Co., and by the banks and shroffs through whom the railway receipts were negotiated, on behalf of the appellant in British India, that they were liable to tax under Section 4(1)(a) of the Act as having been received in British India on its behalf, that there is nothing either in the facts and circumstances of the case or in law why they should be exempted from such liability, that the answers given to the questions which were ultimately considered by the High Court were correct, and the appellant was rightly held liable for the tax on these two amounts subject to all just deductions and allowances. The appeal therefore fails and must stand dismissed