JUDGMENT - Chagla, C.J.

(1) We directed the Tribunal in this reference to submit a supplementary statement of the case, and that statement has now been furnished to us. The question that arises for determination is as to whether a certain sum of money was received by the assessee in British India so as to make it liable to tax.

(2) The assessee is a non-resident company, and it is not disputed that its liability to pay tax depends upon receipt of income within British India. The receipt took the form of cheques being sent by Government to Aundh where the assessee carried on business, these cheques being on a bank in Bombay; and we asked the Tribunal to find as to whether the cheques were received by the assesses in full satisfaction of the debt of the Government of India to them, and whether the Government debt was discharged by the acceptance of these cheques by the assessee. We also asked them to find whether the cheques received by the assessee were sent to their bank for collection and the bank acted as agents for collection and the amounts were collected in British India. Now it is sufficient to dispose of this reference on the first finding.

(3) With respect to the Tribunal, the

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