JUDGMENT

BHARGAVA, J. - The assessee in this case is a Hindu undivided family carrying on business under the name and style of Ram Lal Bachai Ram. The head office of the assessee with a cloth shop was situated at Samohi in the district of Jaunpore in British India and it also ran a branch cloth shop at Bhadohi in the erstwhile Banaras State during the year of account corresponding to the assessment year 1940-41. Cloth worth Rs. 77,469 was sent in the year of account from Bhadohi to Samohi and cash and cloth to the extent of Rs. 65,931 was sent from Samohi to Bhadohi. There was an excess remittance of Rs. 11,538 from Bhadohi to Samohi, it was an admitted fact that profits were available at Bhadohi for remittance to the place of residence of assessees family at Samohi in British India. In these circumstances, the Income Tax Appellate Tribunal, Allahabad Bench, held that this balance of Rs. 11,538 represented profits earned by the firm at Bhadohi outside British India and that, by these transactions entered into in the year of account, this amount had been received in British India by firm. The assessee contended that this amount did not represent profits of the Bhadohi firm received i