TMI Blog1963 (11) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... e, entered into financing agree ments with one Krishna Ayyar and from those agreements an income of Rs. 1,24,004 became due and receivable by him in the accounting year end ing January 31, 1946, which was the previous year for the assessment year 1946-47. These financing agreements were in respect of certain works of construction to be carried out by Krishna Ayyar under contracts with the Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the aforesaid commission of Rs. 1,24,004 referred to in paragraph 7 supra is income that accrued or arose to the assessee in British India within the meaning of section 4(1)(b)(i) of the Indian Income-tax Act ? " The High Court answered the question in the negative holding that the right to receive the income accrued to the assessee in the Mysore State and not in British India. The prese ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 3 of the Act. The question as framed is confined to the point whether the income arose in British India. Such a question is clearly idle because under section 4(1)(b)(ii), as already stated, in spite of the income not accruing in British India, the assessee might be liable in respect of it. The real question is, and on this point the parties are agreed, whether the income arose in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had been referred to it and admittedly it had no power to decide a question not referred to it. At the hearing before us the parties realised the difficulty that arose from the misconception of the real question that needed an answer. They, therefore, agreed that an order be passed by us setting aside the judgment of the High Court, framing the following questions and sending them back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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