20,000.
It also held that the advances received with orders were income, profits and gains received at Ratlam and number in Part A C States and similarly the price of goods sent by V. P. P. was also money received at Ratlam.
He therefore made the assessment on an estimated profit of Rs.
May 20.
The assessees banker was the Bank of India Ltd., Bombay, and the sale proceeds were, according to the Income tax Officer, mainly realised through this Bank.
S. Shukla, for the respondent.
Appeal from the judgment and decree dated September 20, 1955, of the former Madhya Bharat High Court at Indore in Civil Misc.
The Income tax Officer held that the major quantity of goods was supplied to the customers in what was Part A C States either by V. P. P. or by rail, the Railway Receipts being in favour of the respondents and payment was received as stated above.
4,21,955.
He held that the sales were effected in Part A C States and the payments were also received there.
The appellant is the Commissioner of Income tax and the respondents are a firm of manufacturers of perfumery and hair oils at Ratlam in Madhya Bharat and their goods are sold throughout India.
Commissioner reduced the estimated profit by Rs.
This price when received by the Bank was sent by the Bank by means of Bank Draft to the respondents at Ratlam who sent them for being cashed and credited to their account at Bombay.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
5,09,424 without allowing any rebate on account of companycessional rates applicable to Part B States.
The Judgment of the Court was delivered by KAPUR J. This appeal on a certificate by the High Court is brought against the judgment of the High Court of Madhya Bharat in a Reference by the Income tax Appellate Tribunal under s. 66 1 of the Income tax Act.
40 of 1954. ,
The facts lie in a short companypass.
The respondents, a registered firm, were assessed for the assessment year 1950 51, at the rate or rates applicable to income, profits and gains arising or accruing in Part A States.
Case No.
The goods ordered were sent to the customers either by V. P. P. or by rail.
On appeal the Appellate Asstt.
They canvassed orders and sometimes took advance payments in full or in part and after deducting their expenses, remitted the balance to the respondents at Ratlam through Bank drafts etc.
At the relevant time Madhya Bharat was a Part B State and the sole question for determination is where were the income, profits and gains, received or were deemed to be received and on that would depend the rate at which the respondents would be liable to be assessed because of the companycessional rates applicable to Part B States.
373 of 1957.
1,60,340 on sales of Rs.
The companyrse of their business was this they sent out agents to various parts of India.
The Income tax Appellate Tribunal on further appeal reduced the total income from Part A C States to Rs.
It found that the income received through the Post Office, i.e., by V.P.P. was Rs.
The goods were either sent from Ratlam through the post office by V. P. or they were sent from there by rail and the Railway Receipts in favour of self were sent through a Bank with the direction that the goods were to be handed over against payment of the enclosed demand draft.
In regard to the price received by Bank drafts it held that they were received at Ratlam but were sent to the assessees banker in Bombay for being cashed and therefore they must be taken to have been received in a Part A State.
K. Daphtary, Solicitor General of India, K. N. Rajagopal Sastri, R. H. Dhebar and D. Gupta, for the appellant.
1,23,710 and that received in respect of goods sent by rail and realized by the Bank drafts was Rs.
