TMI Blog1968 (9) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... of the court was delivered by GROVER J.-- These appeals are by certificate from the common judgment of the Mysore High Court on the following questions of law which were referred by the Income-tax Appellate Tribunal under section 66(1) of the Income-tax Act, 1922, hereinafter called " the Act. " " (1) Whether, on the facts and circumstances of the case, the income of the assessee did not arise in Bangalore (Mysore State) in respect of sales effected by the assessee to the Burma Teak Trading Co. Ltd., Colombo ? (2) If the answer to the above question is in favour of the assessee, then whether, on the facts and circumstances of the case, the assessee is entitled to the concession under the Part B States (Taxation Concessions) Order, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the assessee made during the relevant assessment years 1951-52, 1952-53 and 1953-54. The assessee claimed that since its registered office was in Bangalore and as the agency agreement with the purchaser at Colombo was entered into in Bangalore, the entire income should be treated as income accruing or arising in the Part B State and concession regarding rates and allowances as provided in the Part B States (Taxation Concessions) Order, 1950, hereinafter called " the Order ", should be allowed to it. The income-tax authorities as also the Appellate Tribunal decided against the assessee. It was held that hardly any activity took place at Bangalore in the matter of earning the profits from the transactions in question. The High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conducted in Bangalore and Ceylon. (3) Apportionment of profits of business was called for pursuant to the assessee's trading profits. The sole point which has been raised before, us by the returned Attorney-General, who appears for the appellant, is that hardly any activity took place of such a nature as could be said to give rise to accrual of profits in Bangalore. It is pointed out that admittedly the manufacturing concern from where the tiles had to be sent to Colombo was in Feroke in British India and that the goods were also delivered f.o.r. Beypore, which was in British India. The assessee's agent resided in British India and supervised all the operations there. Our attention has been invited to the findings of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from a business, all the operations of which are not carried out within the taxable territories, those profits must be deemed to have accrued or arisen in several places where the business operations were carried out and the total profits earned will have to be apportioned on reasonable basis amongst the several operations and tax should be levied only on that portion of the profits which are deemed to have accrued or arisen within the taxable territories. If it be held, as indeed it must be held, that the making of contracts pursuant to which all the subsequent activity in respect of the execution of those contracts took place resulting in profits to the assessee, is an integral part of the entire selling operations, there can be no es ..... X X X X Extracts X X X X X X X X Extracts X X X X
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