TMI Blog1958 (3) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... cured the orders, the assessee forwards those orders to the Deputy Coal Controller in Calcutta. The Deputy Coal Controller then issues quotas of coal to these various mills and orders are issued to the collieries in Bengal to supply the coal ordered by the Controller to the mills. The coal is supplied directly to the mills in Bombay. The railway receipt is sent by the colliery to the assessee and the railway receipt is endorsed by the assessee in favour of the mills. The assessee then submits his bill to the mills, which includes the price of the coal and the assessee's commission. The mills then send cheques to the assessee in Saurashtra and the assessee remits the price of coal to the collieries and retains its own commission. Now the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rders from the mills, it got the necessary quota from the Controller. In order to get the quota it carried on correspondence with the Controller from Saurashtra. It received that the railway receipts from the collieries and endorsed over the railway receipts also in Saurashtra. Every item of the service which ultimately resulted in the mills receiving the coal was rendered in Saurashtra. We cannot accept Mr. Joshi's contention that the real test to apply is where the sale was effected. The assessee is not a selling agent; it does not get its commission on the sale; the commission which it gets is the result of services rendered at the instance of the mills. The mills required the assessee to do some work for them which otherwise they wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n it came to the conclusion that the accrual of the income was in Part A States and not Part B States. The next question is with regard to the receipt of income. Here, with respect to the Tribunal, it is obviously wrong because the cheques in payment of the assessee's commission were sent to the assessee in Saurashtra. They were sent by post, but there is no finding that the assessee asked the mills to send the cheques by post. If that finding had been there, possibly it may have been argued that the assessee constituted the post office its agent. But in the absence of any finding, as the cheques were received by the assessee in Saurashtra, what the assessee received was money's worth and, therefore, the receipt of the income mus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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