P.B.GAJENDKAGADKAR, J.

(1) THE short question which this appeal raises for our decision is whether the appellant assessee is resident in the taxable territories within the meaning of S. 4-A (b) of the Income-Tax Act. This question arises in this way.

(2) THE appellant is a registered firm owning a tea estate called The Erin Estate at Galah in Ceylon. The firm consists of seven partners all of whom are permanent residents of certain villages in Tiruchirapalli District. The total sum paid by the partners amounts to Rs. 25,00,000.00 and the same is divided into 147 shares. Out of these 147 shares, Andiappa Pillai owns 50 shares, Veerappa Pillai owns 43 shares, Nagalingam Pillai owns 18 shares and the remaining four partners own 9 shares each. The estate owned by the firm produces tea which is sold to the authorities under the regulations prevailing in Ceylon. Under Cl. (3) of the Partnership Deed. the superintendent Ponnambalam Pillai, who was himself a co-owner in the said estate previously, manages the estate and looks after its working from day to day. Ponnambalam Pillai permanently stays in Ceylon. He looks after the estate from day to day and it is by him that all s