Judgement

Consolidated Appeals (Nos. 85 of 1935 and 1 of 1936) from two judgments of the High Court, one (August 29, 1933) passed on a reference under s. 66 of the Indian Income-tax Act, 1922, the other (September 19, 1934) upon an application under the Specific Relief Act, 1877.

The reference related to an assessment to income-tax made upon the respondent, the Bombay Trust Corporation, Ld., as agents of the Hong Kong Trust Corporation, Ld., registered and carrying on business in Hong Kong, for the year of assessment 1928-29. The question was whether there was any evidence upon which the income-tax authorities could in law find that in 1927 the Hong Kong company received from the Bombay company any sums as interest on money lent. The question referred to the High Court was " Whether there was any evidence to justify the finding of the Assistant Commissioner that for the year of assessment, profits and gains accrued or arose to the Hong Kong Trust Corporation through its business connection with the Bombay Trust Corporation.”

The proceedings under the Specific Relief Act were brought for an order (inter alia) that the Commissioner should refund and pay back to the Bombay company the