9911796707
TMI Blog1976 (3) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... history and are concerned with the income of the appellant during the calendar years 1941, 1942, 1944, 1945 and 1946, the relevant assessment years for which were 1942-43, 1943-44, 1945-46, 1946-47 and 1947-48. In those years the assessee effected sales of textiles to merchants in the then British India. Question which arose for consideration was as to what part of the income arising out of those sales transactions accrued or arose in British India. As the questions of law involved in each of the appeals were identical, the facts relating to the assessment year 1942-43 only were taken into consideration. According to the finding of the Income-tax Officer in that year the price of the textiles sold by the assessee in British India aggregate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mined could be said to accrue or arise in British India ? (3) Whether on the facts and in the circumstances of the applicants' case, the Tribunal was right in holding that a proportionate part of the profits determined on the sales grouped under items 3, 4, 5 and 9 in the assessment order by the application of rule 33 was assessable to income-tax ? " The High Court answered question No. (3) in favour of the assessee. In view of its finding on question No. (3), the High Court did not answer question No. (2). The Commissioner of Income-tax then came up in appeal to this court and the decision of this court is reported in [1968] 67 ITR 79 (Commissioner of Income-tax v. Hukumchand Mills Ltd.). This court held that the answer to question No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 9,37,919 comprised in categories (a) and (b) were calculated at the rate of 4 1/2 per cent. (i.e., 15 per cent. of 31.12 per cent.) The profits in British India were thus found to be Rs. 42,200. Profits accruing and arising in British India in respect of sales turnover of Rs. 5,42,140 comprised in categories (c) and (d) at the rate of 2 1/4 per cent. (7 1/2 per cent. of 31.12 per cent.) were found to be Rs. 12,200. The total profits accruing or arising in British India to the assessee-company in the assessment year 1942-43 were thus worked out to be Rs. 54,400. The above finding of the Tribunal has been arrived at on consideration of the facts of the case. The modus operandi in respect of the sales of various categories was found by the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such sales were made in the same manner as stated hereinbefore. " The Tribunal also gave a finding that the assessee maintained an organisation in British India, that that organisation was interested in bringing to the notice of the British Indian merchants, brokers and consuming public the goods manufactured by the assessee-company and that the ground work for the sales effected in these groups was done in British India. Nothing has been urged before us either on behalf of the assessee-appellant or on behalf of the revenue-respondent to assail the finding of the Tribunal in the supplementary statement of case. The question as to what proportion of the profits of the sales in categories (a), (b), (c) and (d) arose or accrued in British ..... X X X X Extracts X X X X X X X X Extracts X X X X
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