CHAGLA, C.J. :- The assesses company is a company registered in the Baroda State and the assessment year of this reference is 1942-43 (calendar year 1941). This company is a non-resident company. It manufactures textile goods, and after the goods are manufactured, they are sold by the company ex-mills. The company has their guaranteed brokers Messrs. Jagmohandas Ramanlal and Co., and they guarantee the payment by the merchants to the company and they receive a commission for the work which they do. The contention of the company was that the company being a non-resident company it was not liable to pay any tax on its profits or income as none of the profits made by the company had teen received in British India. In order to decide this question we have to consider separately three items which are the subject-matter of this reference, viz., (1) an item of Rs. 12,68,480, (2) an item of Rs. 4,40,878 and (3) an item of Rs. 6,71,735. Now, with regard to the first item of Rs. 12,69,480 the company debited in their boobs of account a sum of Rs. 13,41,744 to Messrs. Jagmohandas Ramanlal and Co. and credited it to the sales accounts, thereby representing that the goods covered by th