MARIMUTHU PILLAI S Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference arises out of an assessment made upon one Marimuthu Pillai as manager of the joint Hindu family consisting of himself and his undivided brother for the year 1940-41.

(2.) IT is common ground that the family (hereinafter referred to as the assessee) was "resident" in British India within the meaning of Section 4-B (b) of the Indian Income-tax Act, but the assessee was also treated as "ordinarily resident" in British India within the meaning of Section 4-B of that Act. The question whether the assessee was not ordinarily resident in British India became material in connection with the assessment of the income of certain tea estates owned in Ceylon. If the assessee was also "ordinarily resident" in British India, such income would be assessable to tax in British India, irrespective of whether or not it was received in or brought into British India. The income-tax authorities assessed the income on that footing, rejecting the contention that the assessee was not ordinarily resident in British India, as Marimuthu Pillai who was the manager of the family during the year of account (1939-40) had not been in British India for more than two out of seven years preceding that year. The assessees appeal to the income-tax Appellate Tribunal having proved unsuccessful, he applied to the Tribunal under Section 66 (1) of the Act for a statement of the case to this Court as a point of law was involved, and the following question has accordingly been referred for our decision :-