BHAGAWATI PRASAD RAMSHANKAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 66(2), Income -tax Act, 1922, read with Section 21, Excess Profits Tax Act, 1940 arising in the following circumstances:

(2.) THE petitioner filed a petition under Section 66 before the Appellate Tribunal, Calcutta Bench, to refer the points of law to this Court. The petition having been rejected the petitioner filed the present S. J. C. This Court by the order dated 4 -11 -1952, directed the Tribunal to state a case on the following points of law:

(3.) THE main question that arises for determination in the present case is when the Kendu leaves were being collected in the State of Raigarh and transported from out of the State to different parts of British India where they were sold and sale -proceeds were received, whether any part of the business of the petitioner was at Raigarhand the profits of that part of the business accrued or arose in Raigarh. Before proceeding further it will be pertinent to quote Section 42 (3), Income -tax Act as it stood amended after 1939. Section 42, Income -tax Act has been made applicable to the Excess Profits Tax Act, 1940, by virtue of Section 21 of the Act. Sub -section (3) of Section 42, Income -tax Act, runs as follows: