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PETITIONER: THE COMMISSIONER OF INCOME-TAX, BOMBAY
Vs.
RESPONDENT: S. K. F. BALL BEARING CO., LTD.
DATE OF JUDGMENT: 10/08/1960
BENCH: SHAH, J.C. BENCH: SHAH, J.C. DAS, S.K. HIDAYATULLAH, M.
CITATION: 1960 AIR 1294
ACT: Income-tax--Agent selling goods manufactured by Principal-- Remittances of sale Proceeds made to the Principal before and after the recovery of Price of goods--Profits--Whether include remittances made before recovery of Price by the Agent--The Indian Income-tax Act, 1922 (II of 1922), s. 4(1)(a).
HEADNOTE: A Swedish company manufacturing ball bearing equipment entered into an agreement with the respondent, S. K. F. Ball Bearing Co. Ltd. registered under the Indian Companies Act, 1913, appointing the latter as its sole selling agent in India. The material portion of the Agreement ran thus:- " Clause 23:- The Agent shall pay to S. K. F. net sales value of the said products that are sold each month, after deduction of the Commission that has been agreed upon and the import expenses that have been paid. Payment shall be made in Sweden thirty days at the latest following the last day of the month in which the sales have been effected." During the second world war a corporation known as the Pan- rope Corporation was incorporated in the Republic of Panama to take over the assets and business of the Swedish company and the said Panrope Corporation in ...