MOTI RAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is an appeal by the assessee against the order of the Appellate Tribunal dated May 8, 1953, whereby that Tribunal confirmed the Appellate Assistant Commissioner's order of July 23, 1951 and the only question is whether the appellant is liable under S. 4 (1)(b)(iii) of the Income-tax Act to pay tax on Rs. 1,20,000 remitted by him from Srinagar in Kashmir to British India in the relevant accounting year as his profit accumulated outside British India and brought by him into British India.

(2.) This appeal arises out of the proceedings for the assessment of the appellant's income for the year 1945-46. The appellant had been carrying on a business in cloth in Srinagar for a long time. In 1943-44 he started a similar business in Amritsar. It appears that in the relevant previous year, that is, between March 25, 1944 and April 12, 1945, the appellant had remitted from Srinagar to British India an aggregate sum of Rs. 5,00,850 for the purchase of goods there of which Rs. 3,00,000 were found by the Income-tax Officer, Amritsar, who was in charge of the assessment, to have been his income in Kashmir accrued prior to such year and after March 31, 1940. The Income-tax Officer had therefore directed him to pay tax on the said sum of Rs. 3;00,000.

(3.) The appellant preferred an appeal from this order to the Appellate Assistant Commissioner who held that the amount remitted out of the income in Srinagar was Rs. 1,20,000 and not Rs. 3,00,000 as found by the Income-tax Officer, and that the appellant was liable to pay tax on this sum.