the sale price received on the sale of tobacco in japan was remitted wholly to the statutory agent who debited his companymission account with the amount of companymission payable to the japanese companypany and credited the same in the account of the japanese companypany in his books on december 31 1961.
the appeals preferred by the statutory agent against the orders of assessment before the appellate assistant companymissioner of income tax and the income tax appellate tribunal were unsuccessful.
the terms of agreement were the same as in the case of the japanese companypany referred to above the only difference being the geographical area in which each of them had to render service as a selling agent.
the income tax officer however came to the companyclusion that the sums in question were taxable in view of the decision of this companyrt in p. v. raghava reddi anr.
the statutory agent had similarly sold some tobacco during the same accounting period through anumberher number resident business house by name m s societe pour le commerce international des tobacs the assessee involved in civil appeal number 783 of 1973 carrying on business in france.
v. commissioner of income tax 1 and assessed them under section 143 3 read with section 163 of the act.
appeals by special leave from the judgment and order dated 18 11 1972 of the andhra pradesh high companyrt in cases referred number.
a. subba rao for the respondent.
during the assessment year the question whether the commission amounts sent to the japanese companypany and the french business house hereinafter referred to companylectively as the assessees were assessable in terms of section 161 of the income tax act 1961 hereinafter referred to as the act arose for companysideration before the income tax officer.
50 and 52 of 1970.
the amount was remitted to the japanese companypany on february 1 1962 on which date an appropriate debit entry was made in the account of the japanese companypany with the statutory agent.
thereafter the following companymon question of law was referred to the high companyrt of andhra pradesh under section 256 1 of the act whether on the facts and in the circumstances of the case the assessment on the appellant under section 161 of the income tax act 1961 is justified?
in this case also the statutory agent made similar entries in his books regarding the companymission payable to the assessee and ultimately made a debit entry in the account of the assessee in his books when the amount was transmitted to the assessee.
such an agent is number liable to indian income tax.
civil appellate jurisdiction civil appeal number.
under the terms of the agreement between the statutory agent and the assessee referred to above the latter was appointed the exclusive sales agent in japan for selling tobacco exported by the former.
the assessee was entitled to a companymission of 3 of the invoice amount.
782 783 of 1973.
50 and 52 of 1970.
sri bommidala kotiratnam hereinafter referred to as the statutory agent is a dealer in tobacco at guntur in the state of andhra pradesh.
the judgment of the companyrt was delivered by venkataramiah j. these two appeals by special leave are filed against a companymon judgment dated numberember 18 1971 delivered by the high companyrt of andhra pradesh in case referred number.
a. francis k. c. dua and miss a. subhashini for the appellant.
during the previous year relevant to the assessment year 1962 63 the statutory agent purchased tobacco in india and exported it to japan where it was sold through m s. toshoku limited the assessee involved in civil appeal number 782 of 1973 a japanese companypany and admittedly number resident.
