SIR SOBHA SINGH Vs. COMMISSIONER OF INCOME TAX
LAWS(P&H)-1950-6-3
HIGH COURT OF PUNJAB AND HARYANA
Decided on June 13,1950

Sir Sobha Singh Appellant
VERSUS
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

KAPUR, J. - (1.) THIS is a reference by the Income -tax Appellate Tribunal, Bombay Bench, in the matter of assessment for the years 1942 -43 and 1943 -44 of Sir Sobha Singh of New Delhi. The question of law that has been referred to this Court is : - 'Whether the profit made by the assessee from the contracts executed in the Bhopal state was received or deemed to be received in British India by or on behalf of the assessee under Section 4(1)(a) of the Income -tax Act ?'
(2.) THE facts giving rise to this reference are that the assessee obtained some contracts from the Government of India for the supply of vegetables, eggs etc. to the Italian Prisoners Camp at Bairagarh in Bhopal State. The tender forms were issued from Mhow (Indore State), and were accepted either at Bairagarh or at Mhow. The contract deeds were also executed at Mhow, and the assessee supplied in the accounting years the articles contracted for under these contracts. The bills were submitted at Bairagarh but the cheques in payment for these bills were issued by the Controller of Military Accounts, Meerut, and were drawn on the Reserve Bank of India, Bombay branch. These cheques were sent and were received by the assessee at Bairagarh, and he sent them to the Imperial Bank of India, Bhopal branch, 'for collection.' After these monies were collected they were credited to the assessees account with the Imperial Bank of India at Bhopal. The bank charged its usual commission for collection. The vegetables, meat, etc. which the assessee was to supply were purchased in Bhopal State though some portions of these articles were purchased in British India and supplied at the Prisoners Camp.
(3.) NO accounts were produced before the Income -tax Officer, New Delhi. The assessee alleged that he had lost them, and the Income -tax Officer refused to accept the assessment made on the assessee by the Income -tax Officer, Bhopal State, and assessed the tax at 17 1/2 per cent. of the total receipts from the military authorities. There was no dispute as to the income on which it was assessed.;


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