Law:

Section:

JUDGMENT The Appellate Tribunal referred the following two questions of law to this Court for decision under Section 66 of the Indian Income-tax Act. The questions are:- "(1)Whether on the facts and in the circumstances of the case the profits derived by the assessee company from sales made to European and American buyers arose outside British India ? and (2)Whether on the facts and in the circumstances of the case, the profits derived by the assessee company from sales made to European and American buyers were received outside British India?" The assessment years with which we are concerned in this reference are four years-1939-40, 1940-41, 1941-42 and 1942-43. The facts are common to the assessment years and therefore it is that a consolidated reference has been made to this Court. The statement of facts by the Appellate Tribunal and the facts as set out in the order of the Tribunal on appeal from the Appellate Assistant Commissioner are not in dispute and the statement of facts drawn up the appellate Tribunal has been agreed to by the Commissioner of Income-tax and the assessee. The assessee is Mysore Chromite, Ltd., a company registered under the Mysore Company Regulations. Its registered office is at Sinduvalli in Mysore State. It acquired certain mining rights from the Government of Mysore over certain properties situate in that State. Messrs. Oakely Bowden & Co., Ltd., Madras, are the managing agents of the assessee, and their registered office is at No. 15, Armenian Street, Madras. The assessee sells chromite ore after converting it into a merchantable product, mostly to merchants outside India, that is to buyers in America and in Europe. Messrs. Bowden Oakley Ltd., London, are the agents of the assessee in Europe while Messrs. W.R. Grace and Co., New York, are the agents for business in New York. The course of dealing carried on by the assessee through their agents to buyers in Europe is that the buyers entered into contracts for the purchase of the product through the agents of the assessee in London. In regard to the American buyers, it appears that the agents in New York themselves entered into contracts with the company without disclosing the…

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