(Judgment of the Court was delivered by Patanjali Sastri J.)

This is a reference made by the Commissioner of Income Tax, Madras, in pursuance of an order of this Court dated the 26th April 1943 passed in O. P. No. 48 of 1943 under Section 66 (3) of the Indian Income Tax Act, 1922, as it stood prior to the Amendment Act of 1939. One E. M. V. Muthappa Chettiar (hereinafter referred to as the assessee) was assessed as the manager of his undivided family for the year 1937-38 on a total income of Rs. 2,11,793 of the previous year ended the 12th April 1937, including a sum of Rs. 2,03,823 as income derived from the money-lending business carried on by the assessee at various places in India, Burma and Malaya. The latter sum was reduced on appeal to Rs. 1,85,589 of which Rs. 1,18,118 was said to have been remittances to British India of profits earned in the assessees foreign branches at Klang and Penang, and Rs. 13,247 similar remittances of profits earned at Moulmein. It was found, and the finding was not challenged in these proceedings, that the profits available for remittance at Klang and Penang were respectively Rs. 1,07,238 and Rs. 10,880 and the total remittances in the yea