BHIMJI R NAIK Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THIS reference was before this Court on the 29th of September 1944 when we decided that upon the true construction of sub-section 4-A(b) of the Income-tax Act, which deals with the question of residence of a Hindu undivided family, firm or other association of persons, the control and management therein mentioned must be do facto control and management and not de jure control and management and we sent this matter back to the Tribunal to find the necessary facts (see B.R. Naik v. Commissioner of Income-tax). The assessee firm in this case admittedly carries on its business in South Africa. The suggestion of the Commissioner was and is that Rao Bahadur Naik, who founded the business and returned to live in India, still retains the control and management of its affairs. Sub-section (b) of Section 4-A of the Income-tax Act provides :-