On acceptance of orders by the Company at Indore the Company prepared the companytracts, signed them and forwarded the same for being signed by the customer.
20,759 which were deleted by the Appellate L P N 1SCI 5 Assistant Commissioner from the said sales of Rs.
The modus operandi for effecting the sales enumerated in the chart referred to above is described as follows in the statement of the case Sales of Rs.
The goods were delivered, F.O.R. Indore.
6,66,787 The assessee had a paid representative at Bombay who canvassed on behalf of the Company to British Indian Merchants.
The orders were sent by such merchants to Indore.
Sales pursuant to companytracts on which stamps at Holkar State were affixed aggregated to Rs.
The orders were accepted at Indore.
The Appellate Assistant Commissioner on appeal held that taking into account all facts of the case it would be fair to take 3 3 1/3 of the profits realised on sales amounting to Rs.
On the remainder there were British India stamps.
One companytract was signed by the customer and returned to the assessee.
Appeals by special leave from the judgment and order dated August 28, 1961 of the Bombay.
The goods were delivered F.O.R. Indore.
Contracts for such sales were made in the same manner as stated hereinbefore.
Sales on which Holkar Stamps were affixed aggregated to Rs.
The goods under the companytracts referred to hereinabove were delivered F.O.R. Indore.
Sales of Rs.
High Court in Income tax Reference No.
V. Viswanatha Iyer, O. C. Mathur, and, B. Parthasarathy, for the respondent in all the appeals .
Sales of Rs.
The sale proceeds were received at Indore as in other cases.
Sale proceeds were received at Indore through the Imperial Bank of India, Indore.
Sales of Rs.
14,80,059 the Appellate Assistant Commissioner held that, on the analogy of Rule 33 of the Indian Income tax Rules, 3 1/3 profits out of the total profits apportionable to such sales should be attributable to the activities in British India and as such taxed in the hands of the assessee.
The railway receipt was made in the name of self and was endorsed in favour of the customer and handed over to the Imperial Bank of India for being delivered to the merchants.
T. Desai, R. Ganapathy Iyer, R. N. Sachthey and S. P. Nayar, for the appellant in all the appeals .
57,390 which were deleted by the Appellate Assistant Commissioner from the aforesaid sales of Rs.
The sale proceeds were recovered from the Imperial Bank of India, Indore, at Indore as in other cases.
tives in British India 10,02,642 3,35,855 6,66,787 20,759 6,46,028 3 Sales to British Indian merebants through birokers and agents in British India2,91,891 2,91,891 2,91,891 4 Sales to British Indian merchants and brokers during their visit at lndore 3,85,214 3,85,214 2,86,224 5 Sales to British Indian merchants at the time of their own or their brokers visit at Indore 3,13,306 3,13,306 57,390 2,55,916 9 19,93,0533,35,855 16,57,1981,77,13914,80,059 The figures at the extreme right show the item numbers used by the Income tax officer in para 2.of the assessment order .
16,57,198 accrued or arose in British India and as such taxed the same on accrual basis.
The relevant railway receipt made in the name of self was endorsed in favour of the customer and was handed over to Imperial Bank of India, Indore, for being delivered to the merchant.
3,85,214 These sales were made to British Indian merchants and customers, who came to Indore to negotiate and place orders.
On some companytracts there were stamps of Holkar State.
5 of 1961.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
For the assessment year 1942 43, the Income tax Officer classified the total sales of Rs.
These offers were made on the brokers own forms and were companymunicated to the merchants through the brokers.
The goods were delivered F.O.R. Indore.
Balance in British III racts India bearing Stamps of Indore State a, Sales in pursuance of business canvassed by companypanys represemita.
1,77,139 as the companytracts in respect of these were signed at Indore and accepted at Indore.
The Tribunal companyfirmed the order of the Appellate Assistant Commissioner.
92,45,151 into four categories.
98,990 which was deleted by the, Appellate Assistant Commissioner from the aforesaid sales of Rs.
3,35,855 under this category received in British India by the representative of the assessee at Bombay were taxed on receipt basis and the same was number companytested, as stated above.
16,57,198 as attributable to activities in British India.
3,13,306.
The Judgment of the Court was delivered by Sikri, J. These appeals by special leave are directed against the judgment of the High Court of Judicature at Bombay answering the following question Question No.
The railway receipt was made out in the name of Self and was endorsed by the assessee in favour of the customer and handed over to the Imperial Bank of India for being delivered to the party companycerned.
Thus the Company signed at Indore and the customer signed, in British India.
2,91,891 The brokers in British India who were described as free lance brokers transmitted the offers to the companypany.
14,80,059 formed the subject matter of the two questions reproduced above.
Such orders were placed by the brokers in the numbermal companyrse of business of these brokers who were number en, aged by the Mill as such.
The statement of the case details the categories in the following chart Sales Balance Sales effected of pursu Total and companyumns ant to Category of Sales Sales received II and cent.
2178 to 2182 of 1966.
The relevant railway receipt made in the name of Self was endorsed by the assessee in favour of the merchants and handed over to the Imperial Bank of India.
The Income tax Officer held that profits apportionable on sales of Rs.
The companytracts were signed on companypanys forms.
Sales of Rs.
3,85,214.
Such sales, in respect of which relevant companytracts bore the Holkar State stamps aggregated to Rs.
Out of this amount he deducted sales totalling Rs.
Relevant facts are as follows The respondent, Hukamchand Mills Ltd., Indore, hereinafter referred to as the assessee, is a limited companypany incorporated in the State of Indore and had a textile mill at Tadore.
3 against the Commissioner of Income tax, Bombay City and Suburban District, appellant before us Whether on the facts and in the circumstances of the applicants case the Tribunal was right in holding that a proportionate part of the profits determined on sales grouped under Items 3, 4, 5 and 9 in the assessment order by the application of Rule 33 was assessable to Income tax?
Out of the total sales, sales Rs.
For the relevant assessment years, namely, 1942 43, 1943 44, 1945 46, 1946 47 and 1947 48, the Income tax Officer found that the assessee effected certain sales to merchants and others in British India.
6,66,787.
On the balance of sales of Rs.
3,35,855 having been received in British India were taxed on accrual cum receipt basis.
It carried on the business of manufacture and sale of textiles in the calendar years 1941, 1942, 1944, 1945 and 1946.
On some companytracts made for sales under this item, stamps of Holkar State were affixed.
3,13,306 Sales under this category were made to British Indian merchants on their or their brokers personal visit to Indore.
