The Superintendent Government Soap Factory Bangalore V. Commissioner Of Income Tax.

1942 Present: Howard C.J. and Soertsz J.

SUPERINTENDENT, GOVERNMENT SOAP FACTORY,
BANGALORE v. COMMISSIONER OF
INCOME TAX

122-D. C. (Inty.), Income Tax

Mysore State-Sale of goods of Government Soap Factory in Bangalore Profits earned in Ceylon-Liability to Income Tax-Position of Mysore State-Not a Sovereign State-Income Tax Ordinance (Capo 188). ss. 2 and 5 (1) (b) .

Profits derived from the sale in Ceylon of goods produced by the Government Soap Factory in Bangalore, which is owned by the State of Mysore, are liable to assessment for Income -Tax.

The State of Mysore is not an independent Sovereign State and it cannot invoke in aid immunities arising by virtue of International Law.

There is no principle of International Law precluding the Legislature from enacting legislation - imposing on a foreign State liability to pay income tax. On the other hand, unless the foreign State submits to the jurisdiction, there is no power or authority to enforce such liability.

THIS was a case referred to the Supreme Court by the Board of Review under section 74 of the Income Tax Ordin

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