Sen, J. - (1.) There are six references by the Income Tax Appellate Tribunal, Calcutta Bench, made under Section 66 (1) Income Tax Act. Two of them relate to the levy of Income Tax & four to the levy of Excess Profits Tax.
(2.) The relevant facts briefly are as follows: The Port Said Salt Association Limited are a Company incorporated in the United Kingdom & registered therein. They carry on business at Port Said in Egypt & have their head offices at Alexandria. They do not pay British Income Tax on their profits as they are not resident in the United Kingdom. They are also nonresident in India & Messrs. Turner Morrison & Company Limited, Calcutta have been appointed statutory agents of the Port Said Association by the Income Tax/Excess Profits Tax officer under Section 43 of the Income Tax Act.
(3.) The Port Said Association Limited obtain and manufacture salt in Egypt. They assign this salt to Messrs. Turner Morrison & Company Limited for sale at the best price obtainable at or above the prices approved of by the Port Said Association Limited: The shipping operations i.e., chartering, loading, insurance, etc., are effected by the Association in Egypt who send the shipping documents to Messrs. Turner Morrison & Company Limited; all handling of Cargoes on arrival at Calcutta is made by Messrs. Turner Morrison & Company Limited who make the necessary disbursements in connection therewith. The sales are effected by Turner Morrison & Company Limited through the medium of brokers and the sale proceeds are collected by the aforesaid Company and deposited in their bank, the Hongkong-Shanghai Banking Corporation in their name and account. Messrs. Turner Morrison & Company Limited are paid 21/2 per cent commission on all sales except in some cases where they are paid 11/2 percent. After deducting that commission and disbursement expenses they remit the balance to the Port Said Association in Egypt. Unsold salt is kept in salt golahs at the risk and expense of the Port Said Association. Messrs. Turner Morrison & Company sell this salt at the best possible price and remit the proceeds to the Port Said Association. These shortly are the facts which need be stated for the purposes of these references.;