NANDLAL BHANDARI MILLS LTD Vs. STATE OF U P

JUDGEMENT

(1.) THIS is a reference by the Commissioner of Income-tax, Central and United Provinces, under Sec. 66(2) of the Indian Income-tax Act.

(2.) THE said firm shall at any time hereafter, upon the request in writing of the directors for the time being of the said company but at the sole cost and charges of the said Company, open and maintain in Indore or/and Bombay or/and elsewhere a shop suitable for the sale by retail of the cloth and yarn manufactured at the said Companys mills, and shall from time to time out of the cloth and yarn manufactured at the said Companys mills supply the said shop with so much cloth and yarn as there shall be a demand for. THE said firm shall, with the assistance of the directors, have the general management of the said shop and of the business transacted therein and the engagement and discharge of all clerks and servants required in the said shop. THE salaries of such clerks and servants shall be paid by the said company.

(3.) IN the case of any person residing out of British INdia, all profits or gains accruing or arising to such person, whether directly or indirectly, through or from any business connection or property in British INdia, and shall be chargeable to INcome-tax in the name of the agent of any such person, and such agent shall be deemed to be, for all the purposes of this Act, the assessee in respect of such INcome-tax :