Law:

Section:

Income-Place of accrual - Mills situated outside British India - Payments made by buyers in India, by cheques or drafts by post-Whether income accrues in British India.   Where the evidence showed that the agreement between the buyers in British India and a company which manufactured cloth in Petlad (outside British India) was that the buyers should make payments in Petlad by cash, cheque, draft or hundis, and that the usual practice followed by the buyers and the company was that payments were made by cheques or drafts addressed to the company at Petlad but posted by the buyers in places in British India;   Held, that an implied request by the company that payments may be made by post may be inferred from the circumstances and practice, and the post office became an agent of the company to receive payments; and the amounts so remitted by the buyers were received by the company in British India.   Commissioner of Income-tax v. Ogale Glass Works Ltd. (1954) 25 I T R 529 (S C) fol.   Where in a reference under section 66 a Bench of the High Court makes an order calling upon the Tribunal to submit a supplementary statement of the case under section 66 (4) it is not open to the Bench before which the case comes up for hearing after receipt of the supplementary state ment to consider whether the order calling for such a statement was correct.   Commissioner of Income-tax v. Indore Malwa United Mills Ltd. (1960) 39 I T R 438 ; Commissioner of Income-tax v. Ogale Glass Works Ltd. (1954) 25 I T R 529 ; Commissioner of Income-tax v. Patney & Co. (1959) 36 I T R 488 ; New Jehangir Vakil Mills Ltd. v. Commissioner of Income-tax (1959) 37 I T R 11 and Shri Jagdish Mills Ltd. v. Commissioner of Income-tax (1959) 37 I T R 114 ref.   SUPPLEMENTARY STATEMENT OF CASE   In pursuance of the directions of the High Court of Judicature at Bombay, contained in their judgment dated 14/15th September, 1949, pertaining to the item of Rs. 6,71,735, the Income-tax Officer was directed by an order of the Tribunal dated February 28, 1950, to ascertain whether there was any arrangement between the assessee company and its merchants by virtue of which…