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PETITIONER: THE COMMISSIONER OF INCOME-TAX, MADHYA PRADESH & BHOPAL,
Vs.
RESPONDENT: BHOPAL TEXTILES LTD., BHOPAL.
DATE OF JUDGMENT: 17/10/1960
BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. DAS, S.K. SHAH, J.C.
CITATION: 1961 AIR 426 1961 SCR (2) 9 CITATOR INFO : RF 1967 SC1907 (7)
ACT: Income Tax--Supply of goods by non-resident company--Place of Payment, when place of receipt of money by seller--Bank when agent of seller--Railway receipt, if document of title of goods--Property in goods, when transferred to buyer.
HEADNOTE: Respondent, a non-resident company, in the accounting year supplied goods which were sent F. O. R. Bhopal to the buyers in British India. The railway receipts were handed over to a Bank in Bhopal with instructions to hand over the railway receipts to the buyers, who were named as consignees, only on receipt of payment of the bill and collection charges. The branches of the Bank within the taxable territory collected the amounts due from the buyers and transmitted them to Bhopal to the credit of the respondent. The question was whether the profits in the goods were received or deemed to be received in British India. Held, that the decision of this Court in Commissioner of Income-tax v. P. M. Rathod & Co. applied to this case; and the income, profits or gain must be deemed to have been received within the taxabl...