NATIONAL MUTUAL LIFE ASSOCIATION OF AUSTRALIA LIMITED Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THIS is an appeal from a judgment of the High Court of Judicature at Bombay, dated February 27, 1933, whereby the Court answered adversely to the appellants two questions of law, which had been referred to the Court by the Commissioner of Income-tax, Bombay Presidency, on his own motion, under Section 66 (1) of the Indian Income-tax Act (XI of 1922 ).

(2.) THE appellants are a mutual life insurance company, whose head office is in Melbourne, Australia. THEy have branches all over the world, and in India they have two branches, one of which is in Bombay and the other in Calcutta. THE questions of law arise out of a dispute as to the method of computation of the income, profits or gains of the appellant company in the business of its Indian branch offices for the purpose of its assessment to income-tax for the financial year ending on March 31, 1932.

(3.) FROM the documents submitted along with the letter of reference it appears that approximately 98 per cent, of the company's total business is done with its members, the participating policy-holders. Before the Board, it was accepted throughout by both parties that the principles laid down in the English case of New York Life Insurance Company v. Styles (1889) 14 App. Cas. 381 apply in India; this was decided by the High Court in a case between the parties to this appeal, Commissioner of Income-tax, Bombay Presidency V. The National Mutual Life Association of Australasia, Ltd. (1931) I. L. R. 55 Bom. 637 : s. c. 33 Bom. L. R. 807, and, while not meaning thereby to imply any doubts, their Lordships need not and do not express any opinion on this matter.