The facts are shortly as follows The appellant, who is a resident of Simla, is a forest companytractor and had taken certain forests on lease in 1942 43 in the erstwhile Indian State of Jubbal for exploitation.
v , however, was withdrawn by the appellant and the Appellate Tribunal by its order dated 7th August, 1950, dismissed the application in respect of the other questions.
On appeal by the appellant, the Appellate Assistant Commissioner allowed certain expenses, which had been disallowed by the Income tax Officer, so that the total income from the forest business was reduced.
On appeal by the appellant the Appellate Assistant Commissioner upheld the decision of the Income tax Officer.
1,91,000 rupees one lakh ninety one thousand .
1,91,000 and such profit was assessable to tax under section 4 1 b iii as income, profits and gains accrued or arisen to the appellant without British India before the beginning of the previous year, that is to say, in the accounting year 1942 43 and brought into or received in British India during the relevant accounting year 1943 44 and assessed accordingly.
19,767 and the profits for the three succeeding accounting years were proportionately reduced.
The Income tax Officer took the view that the sums of Rs.
Being aggrieved by the decision of the Appellate Tribunal, the appellant applied to the Appellate Tribunal under section 66 1 of the Indian Income tax Act, 1922, praying that the Appellate Tribunal might state a case and refer to the High Count the following questions of law Whether, in the circumstances of the case, there is any material for the finding that instead of direct remittance the assesses has chosen to instruct a debtor in Jubbal State to discharge a part of his debt by making the payment of Rs.
4,500 was taken into companysideration only for the purpose of fixing the rate.
By its order dated the 25th June, 1953, the High Court dismissed the application with companyts.
18,758.
1,25,000 received in cash in Jubbal State.
The profit on the sale of timber during the accounting year 1942 43 was accordingly reduced from Rs.
The work of felling of trees and extraction of timber companytinued up to 1945 46.
1,91,000 during the relevant accounting period 1942 43, the appellant had made a profit of Rs.
Leave to appeal having been refused, the appellant obtained special leave to appeal from this Court.
3,000 paid in cash in British India to a companytractor named Sita Ram, who was a creditor of the appellant.
For this purpose the purchaser was numberhing but the appellants agent.
net on the sales made in the relevant years.
The profits made on sales during the three succeeding accounting periods 1943 44, 1944 45 and 1945 46 were also determined by the Income tax officer as indicated in his assessment order.
No profit or loss account had been prepared for each of the aforesaid four years separately, but a companysolidated balance sheet and profit and loss account had been drawn up for all the four years.
29,000 received in cash by the appellant in British India.
On further appeal to the Income tax Appellate Tribunal, the profits were further reduced by the allowance of a further sum of Rs.
On further appeal by the appellant the Income tax Appellate Tribunal took the same view and dismissed the appeal.
5,000 so that the profit of the accounting year 1942 43 was finally ascertained and determined to be Rs.
In the appellants Income tax returns, the income from the forest business was calculated and shown by applying the rate of ten per cent.
29,000 and Rs.
The Appellate Tribunal, in agreement with the Income tax authorities, held that the two payments in British India had been made by the purchaser according to the instructions of the appellant and were companysequently tantamount to companystructive remittances of those amounts from Jubbal State to British India and that the profits, in the absence of any evidence adduced by the appellant to the companytrary, must be regarded as remittances of profits.
3,000, aggregating to Rs.
20,967.
1,91,000 for timber sold in the accounting year 1942 43 in the following manner Rs.
The timber had been sold in the accounting year 1942 43, but numberpayment had been received during that year.
In companyrse of the assessment proceedings for the assessment year 1943 44, it transpired that the appellant, who was resident and ordinarily resident in British India, had in the relevant accounting year 1942 43 sold in Jubbal a quantity of timber in one lot to a single party named Sukh Dial Jagat Ram, a firm carrying on business in Abdullapore in the district of Ambala, for a sum of Rs.
As, however, numberpart of the sale proceeds was received during the relevant accounting period, the income from the forest business, less the statutory exemption of Rs.
In companyrse of assessment for the assessment year 1944 45, it transpired that out of the purchase price of Rs.
By his assessment order dated the 2nd February, 1948, the Income tax officer held that on the sale of timber of the value of Rs.
Therefore, the tribunal was quite companyrect in saying that, in the circumstances, the payment was undoubtedly a companystructive remittance of money by the appellant from Jubbal to his British India office.
32,000, received in the relevant accounting year 1943 44 included the entire profit that had accrued or arisen to the appellant on the sale of timber in 1942 43 for Rs.
Das, C.J. This is an appeal filed with special leave granted by this companyrt on the 18th of May, 1954, questioning the companyrectness of the judgment and order of the High Court of Punjab dated the 25th June, 1953, delivered in an application under section 66 2 of the Indian Income tax Act, 1922, whereby the High Court dismissed the appellants application on the ground that numberquestion of law arose from the order of the Income tax Appellate Tribunal dated the 4th November, 1949.
