B. P. Jeevan Reddy, J. - (1.) These appeals are preferred by the assessee against the judgment of the Madras High Court answering the Income-tax reference made at the instance of the Revenue, against the assessee. The assessment years concerned are 1967-68, 1968-69, 1969-70 and 1970-71. The question of law which was referred for the opinion of the High Court under Section 256(2) of the Income-tax Act is: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the royalty amounts should be assessed on cash basis for 1967-68, 1968-69 and 1969-70 assessment if the books and balance sheet of such receipts were found to be maintained on cash basis and directing fresh assessment on such basis -
(2.) In the paper-book supplied by the assessee-appellant the statement of the case is not available nor are the orders of any of the authorities supplied. We are, therefore, obliged to draw the facts from the judgment of the High Court which we presume are drawn from the Statement of the Case. As a matter of fact, the facts require to be appreciated clearly for a proper decision of the question arising herein.
(3.) The assessee, Standard Triumph Motor Co. Ltd. is a non-resident Company, having its place of business at Coventry in the United Kingdom. It entered into a collaboration agreement with the Standard Motor Products of India Ltd. (Indian Company) in November, 1939 whereunder the assessee was entitled to royalty of five per cent. on all sales effected by the Indian Company. This amount of five per cent. less the Indian tax had to be remitted to the assessee in the Sterling currency. The assessees accounting year was the year ending 30th of September. With respect to its Indian income, it was filing its returns through the Indian Company.;