1954 JTR(SC) 70
1954 AIR(SC) 504 ; 1954 24 CompCas 537 ; 1954 25 ITR 547 ; 1955 SCR 185
SUPREME COURT OF INDIA
S.R. Das, N.H. Bhagwati, B. Jagannadhadas, JJ.
Commissioner of Income-tax, Bombay South, Bombay. – Appellant
Versus
Kirloskar Bros. Ltd., – Respondent
Civil Appeal No. 20 of 1953
Decided On : 19-04-1954
Act Referred :INCOME TAX ACT : S.4
Section 4-Payment by cheque for supply of goods manufactured in Indian State to Government of India.
The facts found in this case were similar to those found in Commr. of Income-tax, Bombay v. Ogale Glass Works Ltd., (A.I.R. 1954 S.C. 429), except in the following particulars :
(1) that all cheques were made non-negotiable; (2) that no credit was given by the Bank to the assessee before collection; (3) that there was: no finding that the assessee gave credit to the Government for the amount for the cheque immediately on receipt thereof.
Held1: On the facts of the case, income, profits and gains in respect of sales made to Government of India were received in British India within the meaning of S. 4 (1) (a) of the Act.
The facts found in this case were similar to those found in Commr. of Income-tax, Bombay v. Ogale Glass Works Ltd., (A.I.R. 1954 S.C. 429), except in the following particulars :
(1) that all cheques were made non-negotiable; (2) that no credit was given by the Bank to the assessee before collection; (3) that there was: no finding that the assessee gave credit to the Government for the amount for the cheque immediately on receipt thereof.
Held1: On the facts of the case, income, profits and gains in respect of sales made to Government of India were received in British India within the meaning of S. 4 (1) (a) of the Act.
C. K. Daphtary Solicitor-General for India, (Mr. Porus A. Mehta, Advocate, with him), instructed by Mr. R. H. Dhebar, Agent for Mr. G. H. Rajadhyaksha, Agent, for Appellant; Messrs, R. J. Kolah, Y. D. Pandit and Rajinder Narain, Advocates, for Respondent. The Judgement of the Court was delivered by
Judgment
S. R. DAS, J. : The question referred by the Income-Tax Appellate Tribunal for the opinion of the Bombay High Court was as follows :
"Whether on the facts of the case, income, profits and gains in respect of sales made to Government of India was received in British India within the meaning of Section 4(1) of the Act?"
The High Court answered the question in the negative for reasons set out in its judgment covering this case as well as case out of which Appeal No. 19 of 1953 came to be filed before us.
2. The facts, found in this case, are similar to those found in --- Commr. of Income-Tax Bombay v. Ogale Glass Works Ltd. , AIR 1954 SC 429 (A), except in the following particulars:
1. that all cheques were made non-negotiable,
2. that no credit was given by the Bank to the assessee before collection,
3. that there was no finding that the assessee gave credit to the Government for the amount for the cheque immediately on receipt thereof.
Learned counsel on either side did not suggest that the differences noted above, would make any difference in the answer to the referred question which is the same as in the other appeal. That being the position, this case is governed by the Judgement which has just been pronounced by us in the other appeal. We accordingly allow the appeal and answer the referred question in the affirmative. For reasons similar to those referred to in our Judgement in that appeal each party must bear and pay his or its own costs both in this Court and in the High Court.
Appeal allowed.
For Citation : AIR 1954 SC 504