Judgement

Law Rep. 58 Ind. App. 42 ( 1930- 1931) C ommissioner of I.T. v. Remington Typewriter C ompany

182

Appeal (No. 42 of 1929) from an order of the High Court (March 20, 1928) upon a reference under s. 66, sub-s. 2, of the Indian Limitation Act, 1922.

The effect of the order appealed from was to set aside assessments to income-tax and super-tax for the years 1924-5 and 1925-6 made upon the respondent company as agent for the Remington Typewriter Co. of New York.

The learned judges (Marten C.J. and Kemp J.) were of opinion that there was a business connection within the meaning of ss. 42 and 43 of the Act between the respondent company and the New York company, but they held (following their decision reversed by the Privy Council in Income-tax Commissioner v. Bombay Trust Corporation (I)) that having regard to s. 40 of the Act the respondent company could not be assessed, as it had not received the income in question. This matter is reported at 52 Bom. 726.

The material facts and provisions of the Act appear from the judgment.

1930. Nov. 20. Dunne K.C. and Reginald Hills for the appellant. The decision of the High Court was based entirely upon the view that s. 40 of the Act mus