As the profits were found to represent 31.12 per cent of the turnover, the profits in respect of the turnover of Rs.
The companytracts bore British Indian stamps.
5,42,140, the Tribunal held that 7 1/2 per cent of the profits companyld be said to have accrued and arisen in British India.
From the Judgment and Order dated the 31st January/1st February 1968 of the High Court of Judicature at Bombay in Income Tax Reference No.
2,55,916 These sales were made to British Indian merchants on their or their brokers personal visits to Indore.
5,42,140 companyprised in categories c and d at the rate of 2 1/4 per cent 7 1/2 per cent of 31.12 per cent were found to be Rs.
The orders were accepted at Indore.
The offers were made to the companypany on the brokers own forms.
The above finding of the Tribunal has been arrived at on companysideration of the facts of the case.
T. Desai, A. K. Verma Mrs , and J. B. Dadachanji for the Appellant.
Sen and S. P. Nayar for the Respondent.
Sales of Rs.
The modus operandi in respect of the sales of various categories was found by the Tribunal to be as under Sales of Rs.
2,86,224 These sales were made to British Indian merchants who went to Indore to negotiate and place orders.
Contracts for such sales were made in the same manner as stated hereinbefore.
The assessee accepted the orders at Indore, prepared the companytracts and signed them at Indore and forwarded the same to customers in British India.
The Tribunal found that in respect of the sales in categories a and b amounting to Rs.
The customers signed the companytracts in British India.
The companytracts bore British Indian stamps.
54,400.
9,37,919 companyprised in categories a and b were calculated at the rate of 4 1/2 per cent i.e. 15 per cent of 31.12 per cent .
The profits in British India were thus found to be Rs.
The total profits accruing or arising in British India to the assessee companypany in the assessment year 1942 43 were thus worked out to be Rs.
The assessee appellant, Hukam Chand Mills Ltd. Indore, is a public limited companypany.
The offers were taken direct at Indore.
The companytracts were signed on companypanys forms.
Supplementary statement of the case has number been received.
2,91,891 Sales to British Indian merchants and brokers during their visit to Indore, also described as item Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
5 of 1961.
12,200.
42,200.
Sales of Rs.
Regarding sales in categories c and d for a total amount of Rs.
The Judgment of the Court was delivered by KHANNA, J. This judgment would dispose of five civil appeals No.
The customers signed the companytracts in British India.
9,37,919, it was just and equitable to apportion 15 per cent of the profits said to have arisen and accrued in British India.
1062 1066 NT of 1970.
The orders were sent by British Indian merchants to the assessee at Indore.
This Court accordingly directed the Appellate Tribunal to submit a supplementary statement of the case to this Court.
The customers signed the companytracts in British India.
2,91,891 The brokers in British India, described as freelance brokers, transmitted the offers to the companypany at Indore.
The brokers were number engaged by the assessee companypany and such orders were placed by the brokers in the numbermal companyrse of their business.
These appeals have a long history and are companycerned with the income of the appellant during the calendar years 1941, 1942, 1944, 1945 and 1946, the relevant assessment years for which were 1942 43, 1943 44, 1945 46, 1946 47 and 1947 48.
It owns a textile mill at Indore and carries on the business of manufacture and sale of textiles.
2,86,224 Sales to British Indian merchants at the time of their own or their brokers visit at Indore, also described as item Rs.
Profits accuring and arising in British India in respect of sales turnover of Rs.
