S V M MOHAMED JAMALUDDEEN AND BROS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Judgment of the Court was delivered by the Honourable the Chief Justice.

(2.) SECTION 4-A (b) says that a firm is resident in British India unless the control and management of its affair is situated wholly without British India. It has been found as a fact-and the finding is conclusive-that the business in Kilakarai was managed by a partner there. Therefore the control and management of the firm was not wholly without British India. That being the case the firm is liable to be taxed under the Indian Income-tax Act. SECTION 4-A is a new section and is governed here by its terms. Before the Tribunal there was apparently much discussion of clause 7 of the partnership deed which provides for the management of the firm in Colombo. We do not considered that this clause has any bearing on the question. What the court has to considered is the question whether the firm was controlled and managed wholly outside British India, and it is obvious that it was not. The question referred will be answered in the affirmative and as the assessee has failed he must pay the costs, Rs. 250.