TMI Blog1980 (3) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... hile Part A and C States, because the railway receipts in respect of the sale of goods of the value of Rs. 94,037 were made out in the name of 'self' and were sent to the purchasers in the erstwhile Part A and C States after endorsing the same in their favour ? 2. Whether, on the facts and in the circumstances of the case, the entire profits and gains amounting to Rs. 93,019 arisen to the assessee firm in Part A and Part C States should be taken into account for the purpose of applying the test laid down under section 4A(6)(b) or only that part of the profits which can be determined after the application of section 42(3) of the Act as reasonably be attributable to that part of the operations carried on in British India ? " The facts g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the name of " self ". The freight was also required to be paid at the destination. The assessee became entitled to the purchase money on the passing of the title to the purchaser in Part A and C States and, therefore, the income accrued to the assessee in Part A and C States. The Tribunal placed reliance on two Supreme Court cases in Seth Pushalal Mansinghka (P.) Ltd. v. CIT [1967] 66 ITR 159 and CIT v. Hukumchand Mills Ltd. [1968] 67 ITR 79. The assessee filed an application for referring the above-quoted two questions and the Tribunal after hearing the parties referred the above-noted two questions, vide its order dated 20th September, 1969. Learned counsel appearing on behalf of the assessee urged that no doubt the railway receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reas in CIT v. Hukumchand Mills Ltd. [1968] 67 ITR 79 (SC), the railway receipts though drawn in the name of " self " were delivered to the bank for collection and as such the ratio decidendi of these cases was not applicable to the facts of the case on hand. There is no dispute on the point that the goods were despatched f.o.r. and the freight was required to be paid by the purchaser at its destination. The railway receipts were drawn in the name of " self " and endorsed in favour of the customers. Hundis were drawn in the names of the purchasers. There is nothing on record to hold that these hundis were purchased by the bank. It is a well-settled position of law that bill of exchange does not by itself create any obligation between the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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