Law:

Section:

Section 9, read with 163 of the Income-tax Act, 1961 [Corresponding to section 42, read with section 43 of Indian Income-tax Act, 1922] - Income - Deemed to accrue or arise in India - Assessment years 1950-51 and 1951-52 - Assessee was agent of non-resident company receiving commission calculated on net amount of cash received by company in payment of all orders accepted by company and delivered to agency territory-agency territory comprised of India, Burma and Ceylon - Records showed clearly that company earned profits out of its business in Ceylon and Burma through work done by assessee in India and assessee acted precisely in same manner whether orders were from India, Burma or Ceylon - Assessee received commission with regard to all orders, including order placed directly with company or through shipping agents and assessee carried out important obligation with regard to these customers also - Whether clear business connection was established with regard to orders placed from Burma and Ceylon and hence, non-resident company was liable with regard to income earned in Burma and Ceylon - Held, yes - Whether assessee was assessable under section 42, read with section 43 of 1922 Act in respect of income of non resident company not only on sales made thoroughly by assessee but also sales through orders placed directly or through shipping agents - Held, yes FACTS The assessee was agent of a non-resident company and received commission on the net amount of cash received by the company in payment of all order accepted by the company and delivered to the agency territory. The agency territory comprised India, Burma and Ceylon. The Income-tax Department held the assessee to be the statutory agents of the principal company, and in respect of the sales of the company effected in India they allocated a portion of the profits as arising here and brought those profits to tax. The ITO estimated the non-resident company's 'deemed' income at 5 per cent of the sales in India, Burma and Ceylon which was affirmed by the AAC. Before the Tribunal the assessee contended that (1) The non-resident company had no business connection in the taxable territories, (2) the sales of the…

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