LAWS(MAD)-1949-11-8

COMMISSIONER OF INCOME TAX Vs. ANAMALLAIS TIMBER TRUST LIMITED

Decided On November 18, 1949
COMMISSIONER OF INCOME-TAX Appellant
V/S
ANAMALLAIS TIMBER TRUST LTD. Respondents

JUDGEMENT

(1.) AT the instance of the Commissioner of Income-tax, Madras, the Appellate Tribunal, Madras Bench, referred to us under Section 66 (1), Income-tax Act, the following two questions of law :

(2.) IF the answer to question (1) above is in the negative, whether the Bench was correct in law in holding that Section 42 (3) would apply to profits which were received in British India or profits which actually accrued or arose (and were not merely deemed to accrue or arise) in British India?"

(3.) IT would be impudence on my part to attempt to evolve a rule of general application relating to foreign transactions or even in res-pect of the sale of goods, when eminent Judges ruled that it is unwise to do so. IT would be sufficient to confine the observations to the facts before me and to decide the question in the light of the principles embodied in the deci- sions bearing on the point, particularly the decision in Chunilal Mehta's case, I. L. R. (1938) Bom. 752 : (A. I. R. (25) 1938 P. C. 232).