REGENT COMPUTRONICS PVT. LTD.

COMMISSIONER OF INCOME-TAX Appellant

V/S

LITTLE'S ORIENTAL BALM AND PHARMACEUTICALS LTD. Respondents

Referred Judgements :-

GRAINGER V. GOUGH [REFERRED TO]
COMMISSIONERS OF TAXATION V. KIRK [REFERRED TO]
ROBINSON BROS. LTD. V. HOUGHTON & CHESTERS LE-STREET ASSESSMENT COMMITTEE [REFERRED TO]
SULLEY V ATTORNEY GENERAL [REFERRED TO]
GREENWOOD V. SMIDTH & CO. [REFERRED TO]
FEDERAL COMMISSIONER OF TAXATION V. W. ANGILSE,CO. PTY. LTD. [REFERRED TO]
COMMR. OF INCOME-TAX V. STEEL BROTHERS & CO. [REFERRED TO]
LOVELL & CHRISTMAS LTD. V. COMMRS. OF TAXES [REFERRED TO]
MACLAIME V ECCOOTT [REFERRED TO]
DE BEERS CONSOLIDATED MINES LTD. V. HOWE [REFERRED TO]
MITCHELL V. EGYPTIAN HOTELS LTD. [REFERRED TO]
EGYPTIAN DELTA AND INVESTMENT CO. V. TODD. [REFERRED TO]
SWEDISH CENTRAL RAILWAY CO. V. THOMPSON [REFERRED TO]
SECY.,BOARD OF REVENUE,INCOME-TAX,MADRAS V. MADRAS EXPORT CO. [REFERRED TO]
COMMISSIONER OF INCOME-TAX,MADRAS V. S.L. MATHIAS [REFERRED TO]
NAGAYYA V. COMMISSIONER OF INCOME-TAX [REFERRED TO]
COMMR. OF INCOME-TAX V. NATIONAL MUTUAL INSURANCE ASSOCIATION OF AUSTRALASIA LTD. [REFERRED TO]
JIWANDAS V. INCOME-TAX COMMISSIONER,LAHORE [REFERRED TO]
AHMED BHAI UMARBHAI & CO. V. EXCESS PROFITS TAX OFFICER [REFERRED TO]
HIRA MILLS LIMITED VS. INCOME TAX OFFICER [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. BANK OF CHETTINAD LIMITED [REFERRED TO]
IN RE: MOHANPUR TEA CO LTD VS. STATE [REFERRED TO]
WALLACE BROTHERS AND CO LTD VS. COMMISSIONER OF INCOME [REFERRED TO]
BEJOY SINGH DUDHURIA VS. COMMISSIONER OF INCOME-TAX, CALCUTTA [REFERRED TO]
SUDALAIMANI NADAR VS. COMMISSIONER OF INCOME-TAX, MADRAS [REFERRED TO]
ROGERS PRATT SHELLAC COMPANY VS. SECRETARY OF STATE [REFERRED TO]
IN RE: PORT SAID SALT ASSOCIATION, LTD VS. STATE [REFERRED TO]
GOVERNOR GENERAL IN COUNCIL VS. PROVINCE OF MADRAS [REFERRED TO]
PONDICHERRY RAILWAY CO LTD VS. COMMISSIONER OF INCOME-TAX, MADRAS [REFERRED TO]
COMMISSIONER OF INCOME-TAX, BOMBAY PRESIDENCY AND ADEN VS. CHUNILAL B MEHTA, BOMBAY [REFERRED TO]
INTERNATIONAL HARVESTER CO OF CANADA LTD VS. PROVINCIAL TAX COMMISSION [REFERRED TO]
COMMISSIONER OF INCOME-TAX, BOMBAY PRESIDENCY VS. CURRIMBHOY EBRAHIM AND SONS, LTD [REFERRED TO]
COMMISSIONER OF INCOME-TAX, BEHAR AND ORISSA VS. KAMESHWAR SINGH OF DARBHANGA [REFERRED TO]
COMMISSIONER OF INCOME-TAX, BENGAL VS. SHAW WALLACE AND COMPANY [REFERRED TO]
COMMR OF INCOME-TAX, BOMBAY PRESIDENCY VS. BOMBAY TRUST CORPORATION [REFERRED TO]

JUDGEMENT

(1.) THE following question was referred to us by the Income -tax Appellate Tribunal under Section 66 (1), Income -tax Act :

(2.) UNTIL the war scare of 1942, the company (in this judgment referred to as the assessee) was a resident of Madras and was assessed as such. On 22 -4 -1942, the office of the managing agents and the factory of the company was shifted to Mysore, but was brought back in May 1943. "The previous year" of the company ended on 31 -12 -1942, the assessment year being 1948 -44. From 22 -4 -1942 to 31 -12 -1942, the factory of the company and the office of the managing agents were undoubtedly in Mysore. The Ap pellate Tribunal found that out of the total sales of Rs. 2,42,917 during the accounting year, sales of the amount of Es. 46,559 were made in Mysore outside British India, but the balance of Rs. 1,96,358 represented the sales in British India. The Appellate Assistant Commissioner held that 80 per cent. of the profits made by the company had accrued and arisen in British India and therefore the company was a resi dent in British India during the accounting period within the meaning of Section 4 -A (c)(b), Income -tax Act.

(3.) SECTION 42 (1) defines for the purpose of the Act what constitutes income, profits or gains "deemed to have accrued or arisen within British India". In the case of a non -resident, if income, profits or gains accrue or arise outside British India by reason of business connection in British India, or by other nexus indicated in that clause, such income, profits and gains are deemed to have accrued or arisen in British India. In such a case under SECTION 42 (3) of the Act if the business comprised operations carried out within and without British India, the profits and gains of the business, which are deemed to have accrued under the section are apportionable between the operations carried out in British India and outside British India and the assessment would be confined to such of the profits and gains as are attributable to operations carried in British India.

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COMMISSIONER OF INCOME TAX Vs. LITTLES ORIENTAL BALM AND PHARMACEUTICALS LIMITED

Referred Judgements :-

JUDGEMENT

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