the assessment proceedings for the assessment years 1939 40 to 1942 43 were started by the additional income tax officer tiruchirapalli circle.
out of these 147 shares andiappa pillai owns 50 shares veerappa pillai owns 43 shares nagalingam pillai owns 18 shares and the remaining four partners own 9 shares each.
in regard to the manuring of tea gardens the salary to be paid to the clerk the purchase to be made the expenditure to be incurred in companystructing a building the manner in which the goods should be packed and sent all these are subjects discussed by the partners in their letters to the superintendent and in respect of all these presumably the superintendent had asked for directions and the partners gave him the directions.
the tribunal took the view that the evidence produced in the case showed that the companytrol and management of the appellants affairs was situated wholly without the taxable territories and so it reversed the finding of the income tax authorities that the appellant was a firm resident in the taxable territories.
the appellant submitted its returns before the income tax officer and claimed that the firm was number resident in british india and so the income arising in ceylon from the appellants estate was number assessable to tax in india.
the appellant then went in appeal before the income tax appellate tribunal madras the tribunal dealt with the appeal for 1941 42 assessment in the first instance and allowed it.
against these orders of the tribunal reference applications were filed by the companymissioner of income tax but these applications were dismissed by the tribunal under section 66 1 of the act.
subsequently the appellant applied for and obtained a certificate from the high companyrt under section 66a 2 that the present case is a fit one to appeal to the supreme companyrt of india.
the income tax officer rejected the appellants companytention and held that the appellant was a resident under the provision of section 4a b of the act and so he proceeded to tax the entire income accruing to and arising from the appellants estate in ceylon.
the appellant filed appeals against the several assessments thus made before the appellate assistant companymissioner of income tax tiruchirapalli.
the appellant is a registered firm owning a tea estate called the erin estate at galah in ceylon.
accordingly a companysolidated reference was made to the high companyrt and on march 27 1951 the high companyrt held that the appellant was a resident in british india and answered the question referred to it in the affirmative.
on july 13 1940 andiappa pillai told the superintendent to pack and send 70 lbs.
the firm companysists of seven partners all of whom are permanent residents of certain villages in tiruchirapalli district.
the total sum paid by the partners amounts to rs.
2500000 and the same is divided into 147 shares.
f.b.o.p.
for the other years in question the same order was passed by the tribunal.
these appeals however failed and were dismissed.
