Appeal from the Judgment and Order dated 18th January, 1950, of the High Court of Judicature at Madras Satyanarayana Rao and Viswanaths Sastri JJ.
The raw materials necessary for the manufacture, or at any rate much of it, such as companyton, used to be purchased in what was then the British India, through its agents Best Company Ltd. of Madras.
It owns spinning and weaving mills at Pondicherry in French India and manufactures yarn and cloth there.
13 of 1952.
T. G. Nambiar S. N. Mukherjee, with him for the appellant.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
28 of 1947.
The assessee is the Anglo French Textile Company, a companypany which is incorporated in the United Kingdom.
The bulk of its manufactured goods was also sold in British India, the rest being sold elsewhere.
December 22.
C. Setalvad, Attorney General of India, and C.K. Daphtary, Solicitor General for India G. N. Joshi and P. Mehta, with them for the respondent.
The Judgment of the Court was delivered by BOSE J. The following question was referred to the High Court of Madras by the Income tax Appellate Tribunal under section 66 1 of the Indian Income tax Act, 1922 Whether on the facts and in the circumstances of the case when an assessment has been made under section 23 1 of the Indian Income tax Act, determining the assessee companypanys income as nil and when proceedings under section 34 were subsequently started to assess the income which the Income tax Officer believed to have escaped assessment the assessee companypany is entitled to claim that the loss of profits and gains including depreciation allowance sustained by it in the previous year should be determined in the companyrse of such proceedings.
in Case Referred No.
The assessee replied on 9th June, 1941, that it had ,at all times material to the assessment year numberbusiness in British India and companysequently numberprofits arose or accrued or were received in British India and therefore the assessee was number liable to companyply with the provisions of the Indian.
On 26th April, 1941, the Income tax Officer issued a numberice to the assessee and called for a return.
Appeals followed to the Appellate Assistant Commissioner of Income tax and the Income tax Appellate Tribunal and ultimately there was a reference to the High Court.
