Sarkar, J. - (1.) The respondent, the assessee, entered into financing agreements with one Krishna Ayyar and from those agreements an income of Rs. 1,24,004 became due and receivable by him in the accounting year ending January 31, 1946, which was the previous year for the assessment year 1946-47. These financing agreements were in respect of certain works of construction to be carried out by Krishna Ayyar under contracts with the Government of India in certain places within the Indian State of Mysore as it was then constituted. The assessee, who ordinarily, resided in British India, contended in his assessment for the year 1946-47 that the aforesaid income accrued and arose to him in the Indian State of Mysore but had not been remitted into British India and, accordingly, that it was exempt from income-tax under section 14 (2) (c) of the Income Tax Act as it then stood. The taxing authorities and the Tribunal held that the income had accrued in British India and was not, therefore, exempt. With the reasons for This view we shall not be concerned in this appeal.
(2.) At the request of the assessee the Appellate Tribunal referred the following question to the High Court of Madras under section 66 (1) of the Income Tax Act : "Whether the aforesaid commission of Rs. 1,24,004 referred to in paragraph 7 supra is income that accrued or arose to the assessee in British India within the meaning of section 4 (1)(b)(i) of the Income Tax Act -
(3.) The High Court answered the question in the negative holding that the right to receive the income accrued to the assessee in the Mysore State and not in British India. The present appeal is against this judgment.;