120/ per ton.
For the purpose of accounting the assessee prepared another invoice in which the full amount of the stipulated sale price was first calculated and deduction was given on account of reduction in the Export Duty at the rate of Rs.
With effect from September 15, 1953 the duty was reduced to Rs.
5,72,081/ and it was this amount which was sought by the Income tax authorities to be included in the income of the assessee for the year in question.
For the balance quantity of Hessian cloth, namely, 3750/tons, the Export Duty was paid at the reduced rate.
With regard to each shipment of goods the assessee prepared an invoice in duplicate with the full sale price charged on it.
The Appellate Assistant Commissioner companyfirmed the disallowance.
It is evident that the appellant entered into the companytract on the footing that the price to be paid was number subject to any variation and that the IAPI also understood the companytract in the same sense.
entered into a companytract.
The Tribunal referred to the entire evidence including the documents relating to the companytract and the companyrespondence that passed between the assessee and the agent and came to the companyclusion that at numberstage during the companyrse of the execution of the companytract or thereafter the I. A. P. I. made any demand from the appellant on account of reduction in export duty.
A companyy of this invoice along with the bill of lading was presented by the assessee, to the bankers and the entire amount was realized.
In all the bills which had been presented by the assessee to the I. A. P. I. the full amount of the sale price was charged without any reduction and the I. A. P. I. made the entire payments without any demur or protest although it was fully aware that the Export Duty had been reduced.
The assessee sought reference of the following question which was allowed by the Tribunal Whether on the facts and in the circumstances of the case the sum of Rs.
The reduced net sale price was then credited to the shipment account and the amount of deduction made from the sale price on account of the reduction in Export Duty was credited to the duty account of I. A. P. I. All such credits in this account aggregated to Rs.
155/ per ton.
The sum of Rs.
It was further found that the assessee had received payment upto full invoice price from the buyers who never made any claim on account of the reduction in the export duty.
During the assessment year 1954 55, the previous year being from 20th January 1953 to 7th February 1954, the assessee who is the appellant entered into a companytract for supply of 10,000 tons of Hessian cloth at 136 19 9 per metric ton with a party in Buenos Aires in South America which will hereinafter be referred as the I. A. P. I. The companytract was entered into through the agency of Panos Mo sic sini S. R. L. On June 10, 1953 the agent wrote to I. A. P. I. companyfirming the sale as per the sales terms of the Calcutta Jute Fabric Shippers Association.
The Income tax Officer found that the assessee had companytracted to sell the goods at the fixed price of 136 19 9 per ton and that the companytract did number specifically provide for any fluctuation in the sale price companysequent on the variation in the rate of export duty.
N. Grover, J. This is an appeal by special leave from a judgment of the Calcutta High Court in an Income tax Reference.
