1973 (3) TMI 5 - SC - Income Tax

Whether the Tribunal was right in its finding that the assessee would not be liable to tax in respect of the goods sold by the assessee on railway receipts in the names of the consignees - place of accrual of income - department appears to have failed to establish the fact that the banker functioned as the agent of the assessee. If the banker had functioned as the agent of the purchaser then it cannot be said that any part of the income was realised in British India

Summary

The Supreme Court dismissed an appeal regarding the tax liability of an assessee for goods sold outside British India in the assessment year 1943-44. The High Court ruled in favor of the assessee, stating that the sales took place outside British India and the income was not realized there. The Tribunal found that the banker was the agent of the purchasers, not the assessee. The appeal was dismissed with costs.