Law:

Section:

I Section 5 of the Income-tax Act, 1961 [Corresponding to section 4(1) of the Indian Income-tax Act, 1922] - Income - Accrual of - Assessee owned and operated distillery in Mewar which was not taxable territory at that time - Assessee sold some of its products in British India which was taxable territory - Whether amounts received in cash on behalf of assessee in British India towards price of goods supplied by assessee to buyers would be taxable - Held, yes - Whether amounts received through cheques which were drawn by buyers in British India on banks in British India and were collected by assessee through its bankers in Indian States (non-taxable territory) and acting as assessee's agents would not be treated as income received in taxable territory - Held, yes - Whether amount received by means of hundies drawn by buyers in British India and discounted by assessee's bankers in Udaipur would be liable to tax - Held, yes II Section 124 of the Income-tax Act, 1961 [Corresponding to section 64(3) of Indian Income-tax Act, 1922] - Assessing Officer - Jurisdiction of - Whether decision of CIT in respect of objection regarding place of assessment could not be reopened in appeal before Tribunal because it fell outside scope of section 30 or 33 of 1922 Act - Held, yes FACTS-I The assessee firm owned and operated a distillery at Udaipur. During the assessment year 1945-46, it sold some of its products in areas then included in British India. In the relevant period in the erstwhile State of Mewar, of which Udaipur was the capital, was the capital, there was no income-tax. There were six items of receipt. The first three items were received in cash on behalf of the assessee in British India, towards the price of the goods supplied by the assessee to the buyers. The fourth item were cheques, drawn by the buyers in British India on banks in British India and were collected by the assessee through its bankers in Indian States (non-taxable territory) and acting as assessee's agents. The last two items were monies received by means of hundies drawn by buyers and discounted by the assessee's bankers at Udaipur. According to the ITO in all those transaction the assessee was…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492