Judgement

S. R. DAS J.: This is an appeal from the judgment pronounced by the High Court of Judicature at Madras on the 29th March 1951 on a consolidated reference by the Income-tax Appellate Tribunal under Section 66(1) of the Income-tax Act whereby the High Court answered in the affirmative both the referred questions which were expressed in the following terms:

"(1) Whether on the facts and in the circumstances of the case the profits derived by the assessee company from sales made to European and American buyers arose outside British India?

(2) Whether on the facts and in the circumstances of the case the profits derived by the assessee company from sales made to European and American buyers were received outside British India?"

2. The above questions of law arose out of proceedings for the assessment to Income-tax of the respondent, Mysore Chromite Ltd., (hereinafter referred to as the assessee company), for the years 1939-1940, 1940-1941. 1941-1942 and 1942-1943. The facts leading up to the reference as found by the Income-tax Appellate Tribunal are shortly as follows :

3. The assessee company is a private limited company registered in the Mysore State under the Mysore Company Reg