PATNY AND COMPANY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference made by the Tribunal to the High Court under S. 66(1) of the IT Act, on an application by the CIT.

(2.) THE point that has been raised on this reference is whether on the facts and in the circumstances of the case as stated in the reference at page 3 of the printed paper book, certain amounts received during the accounting year by the assessee as commission, from some of the parties for whom it was doing business, was income that accrued, arose or was received in British India. The assessment relates to the year 1945 46 before the State of Hyderabad was integrated with India and the assessee is a company doing commission business at Secunderabad. The facts on which the question arises are stated in paragraph 4 of the statement of the case printed at page 2 of the paper book.

(3.) IN the above said judgment, they also held that the CIT is not entitled to ask the Court for any answer to the reference on the footing of income having accrued or arisen within British India ; that the reference, must, therefore, be confined in its further stages only to the question of assessability of the income on the basis of the place of the receipt of the same ; that the question of the place of the receipt of income for income tax purposes is not the mere receipt of income into his hands by the assessee, but is a legal concept depending on all the relevant facts ; and that it is not purely a question of fact.