JUDGMENT

SUBBA RAO J.-This appeal by special leave is directed against the judgment of the High Court of Judicature at Bombay in Income-tax Reference No. 27 of 1959.

The assessee, B. R. Iranee, the proprietor of Messrs. C. M. Karanjia & Co., was carrying on business of export and import in Hong Kong. In March, 1941, he started a similar business in Bombay. He came to Bombay on June 29, 1941, from Hong Kong leaving an employee to look after his business there. During the year ending with December 31, 1946, he was a resident but not ordinarily resident of India within the meaning of the provisions of the Indian Income-tax Act. He was controlling the affairs of the Hong Kong business from Bombay during that year. But during the course of that year he went to Hong Kong on June 9, 1946, and returned to Bombay in September, 1946. For the assessment year 1947-48, the Income-tax Officer estimated his income from the Hong Kong business at Rs. 1,00,000, included the same in his assessment and assessed income-tax thereon. The assessee contended that the profits of the Hong Kong business were not taxable on the ground that he did not control that business from India and that, in any event, the l