All handling of the cargoes when they arrive at Calcutta and the necessary disbursements in companynection therewith are carried out and made by Turner Morrison, Company Ltd. The sale proceeds are companylected by Turner Morrison Company Ltd. and credited to the account kept in their own name with the Hongkong and Shanghai Banking Corporation.
31 of 1949, Mitra S. N. Mukherjee, with him for the appellant.
Appeal from a Judgment and Decree dated 25th July, 1950, of the High Court of Judicature at Calcutta Sen and Chunder JJ.
exercising Special Jurisdiction Income tax in Income tax Reference No.
the assessment was properly made under section 4 1 a and incidentally the Tribunal also came to the companyclusion that the alternative companytention of the Income tax authorities that the assessment should be made under the first part of section 4 1 c was also well founded and that section 42 had numberapplication to the case The result was that the Tribunal companyfirmed the findings of the Income tax Officer and the Appellate Assistant Commissioner and dismissed the appeals.
The Agents took a further appeal to the Income tax Appellate Tribunal.
And if the answer to the first question is in the negative, Whether, in the facts and circumstances of this case, the Tribunal was right in accepting the companytention of the Department that the income accrued or arose or is deemed to accrue or arise in India and is assessable to tax as companytemplated by section 4 1 c ?
Part of the salt so manufactured by the Association is companysigned to Messrs. Turner Morrison Company Ltd. for sale in India.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
On these facts the Income tax Officer treated Turner Morrison Company Ltd. as the agents of the Association under section 43 of the Indian Income tax Act and assessed them to income tax for the two assessment years mentioned above under section 4 1 a or, alternatively, under the first part of section 4 1 c .
The Judgment of the Court was delivered by DAS J. This appeal arises out of six references made by the Calcutta Bench of the Income tax Appellate Tribunal under section 66 1 of the Indian Income tax Act, two of them relating to the incometax assessment years 1943 44 and 1944 45 and the remaining four relating to excess profits tax for the chargeable accounting periods ending on the 31st December of each of the years 1940, 1941 1942 and 1943 respectively.
chartering of steamer, loading, insurance etc.,
are effected in Egypt by the Association who sends the documents to Messrs. Turner Morrison Company Ltd. Messrs. Turner Morrison and Company Ltd. effect sales in India through brokers at the best price obtainable at or above the prices approved by the Association.
41 of 1952.
is paid.
Turner Morrison Company Ltd. hereinafter referred to as the Agents preferred appeals against the aforesaid assessment orders to the Appellate Assistant Commissioner who, however, dismissed the appeals.
They were also assessed to excess profits tax for the four chargeable accounting periods herein before mentioned.
All shipping operations, ie.,
January 16.
The reference came up for disposal before a Bench of the Calcutta High Court Consisting of Sen and Chunder JJ.
K. Daphtary, Solicitor General for India P. A. Mehta, with him for the respondent.
The learned Judges gave the following answers to the questions Question 1 .
