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TMI Blog1939 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... was expended by such agents in the purchase in England on behalf of the respondents of certain mill stores and machinery which were then sent to the respondents in British India and there used by them for the purposes of their business. 3. In these circumstances the Income Tax Officer in assessing the respondents to Income Tax for the year of assessment 1936-7 included in their income for the year 1935-6 the sum of ₹ 18,333 as being income " brought into British India " within the meaning of Section 4 (2) of the Indian Income Tax Act, 1922. 4. It will be convenient at this stage to set out Section 3 of the Act and the material portions of Section 4 as these Section s stood in the year of assessment. Section 3.-Where any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Income Tax in respect of the amount in question to the High Court under Section 66(2) of the Act. The Commissioner accordingly made a reference of the following question :- Whether in the circumstances of the case the Income Tax Officer has rightly included in the income liable to tax the amount of ₹ 18,333 on account of interest on sterling securities on the ground that though the said income accrued or arose in England it was received or brought into British India within the meaning of Section 4(2) of the Act. 7. In making the reference the Commissioner, as required by the Act, expressed His own opinion upon the question referred. His opinion was that the answer to the question should be in the affirmative. 8. The reference in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome may be received ' in specie or in any form known to the commercial world for the transmission of money from one country or place to another. Much to the same effect was said by Lord Lindley in the same case (p. 296). ...a sum of money'' [he said] "may be received in morel ways than one, e.g., by the transfer of a coin or a negotiable instrument or other document which represents and produces coin, and is treated as such by business men. Even a settlement in account may be equivalent to a receipt of a sum of money, although no money may pass. 10. Other examples can readily be imagined. Beaumont C.J., indeed, suggested the case of an assessee, who; was desirous of bringing into British India foreign income for use th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia resulted in ₹ 18,333 foreign income being brought into British India. 12. Their Lordships are not prepared to accept so extravagant a contention. To show how extravagant it is many illustrations might be given. It will be sufficient to take one suggested by Mr. Hills in the course of his argument before their Lordships. A resident in British India when on a visit to this country receives here the sum of £500 sterling as interest on British Government Stock. He expends it here in replenishing his wardrobe and in purchasing a motor car. At the end of two years he returns to British India taking with him the garments and the motor car. The garments have been worn for two years and the car in that time may have been driven 40, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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