INDIAN RADIO AND CABLE COMMUNICATIONS CO, LTD Vs. COMMISSIONER OF INCOME-TAX, BOMBAY PRESIDENCY AND ADEN

JUDGEMENT

(1.) This is an appeal from a judgment and order of the High Court of Judicature at Bombay, dated 28 March 1935, whereby the High Court, upon the hearing of a case referred to it by the respondent under the provisions of S. 66 (2), Income-tax Act, 1922 (11 of 1922) (referred to below as 'the Act,') answered the question of law raised thereby adversely to the contention of the appellant company. The question of law referred to the High Court arose in the course of the assessment of the income of the appellant company chargeable with income-tax and super-tax for the year of assessment ending on 31 March 1934, and was as follows:

(2.) Whether the half share of the net profits, payable by the Assessee company (meaning the appellant company) under Cl. 5 of the Agreement dated the 19 day of February 1932, viz., Rs. 3,35,861 is a proper deduction to be allowed for the purposes of arriving at the amount on which this company should be assessed for the purposes of income-tax and super-tax, within the meaning of S. 10 (2)(ix).

(3.) It should be added that the material sub-section of the Income-tax Act, 1922, is S.12 (2) which, after providing that the tax shall be payable under the head 'other sources' in respect of income, profits and gains of every kind, enacts as follows :