Judgement

BHAGWATI, J. : The Appellant, a non-resident company, was assessed to income-tax for the assessment year 1942-43 in respect inter alia of the profits earned on the Sales of textile. goods of the value of Rs. 4,21,873 supplied to the Government of India and of the value of Rs. 6,02,911 supplied to merchants in British India on orders secured through "Reporters". The assessment was upheld on appeal and on further appeal by the Tribunal. Eventually three questions of law were referred by the Tribunal to the High Court, viz.

1. Whether the profits on the sale of goods to the Government of India accrued or arose in British India.

2. Whether the profits on the sale of goods through the Company s paid employees British India accrued or arose in British India.

3. Whether the sale proceeds amounting to Rs. 1,37,469-13-9 which necessarily included profits were received in British India by or on behalf of the assesee company.

2. The third question was not pressed before the High Court. But in regard to Questions 1 and 2 the High Court found that the statement of the case by the Tribunal was most unsatisfactory, that the relevant correspondence and documents were scattered over the stat