1955 (3) TMI 50

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..... ount, by or on behalf of the assessee company within the meaning of section 4(1)(a) of the Indian Income-tax Act, 1922? 2. The assessee, Bhopal Textiles Ltd., Bhopal, was a non-resident company in the year of account ending 31st March, 1945. Its total sales amounted to ₹ 71,47,260 and net profits to ₹ 26,85,000. Out of the total sales, goods of the value of ₹ 4,10,785 were supplied to the nominees of the Government of India at Agra, Allahabad and Delhi. This was done in pursuance of an agreement between the assessee company and the Government of India for the supply of goods to the Government or its nominees. It was agreed that the goods would be inspected, approved and taken delivery of at the mill premises and the p .....

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..... n, and that as a matter of fact, the nominees of the Government of India received the goods at Agra, Allahabad and Delhi. 5. The order of the Tribunal proceeds on an erroneous assumption that the goods belonged to the assessee company when the railway receipts were delivered to the Bhopal branch of the Imperial Bank of India. Under section 23 of the Indian Sale of Goods Act, 1930, the goods passed to the buyers as soon as they were inspected and approved at the mill premises, which amounted in law to unconditional appropriation of the goods to the contract by the buyers with the assent of the seller. Thereafter the assessee company delivered the goods to the railway for the purpose of transmission to the buyers, and as there is nothing t .....

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..... h India and credited the account kept in its own name with a bank in British India. Similarly, in the other case the assessee non-resident company effected sales in British India through its brokers who received payment on its behalf. So also in Sir Sobha Singh v. Commissioner of Income-tax [1950] 18 I.T.R. 998, the payment was made to the assessee company at the office of the Reserve Bank, Bombay, in accordance with the contract, and in Bangalore Woollen, Cotton and Silk Mills Co. Ltd. v. Commissioner of Income-tax [1950] 18 I.T.R. 423, the sale money was collected by the assessee company's managing agents in British India. The facts of this case are, however, different and are similar to those of Commissioner of Income-tax v. Anamalla .....

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