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PETITIONER: MAZAGAON DOCK LTD.
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX AND EXCESS PROFITS TAX
DATE OF JUDGMENT: 12/05/1958
BENCH: AIYYAR, T.L. VENKATARAMA BENCH: AIYYAR, T.L. VENKATARAMA GAJENDRAGADKAR, P.B. SARKAR, A.K.
CITATION: 1958 AIR 861 1959 SCR 848
ACT: Income Tax-Non-resident cayrying on business with resident No profit accruing from dealings between them-Assessment of resident-Validity-" Business ", meaning of -Indian Income- tax Act, 1922 (11 Of 1922), s. 42(2).
HEADNOTE: Under s. 42(2) Of the Indian Income-tax Act, 1922, " Where a person not resident or not ordinarily resident in the taxable territories carried on business with a person resident in the taxable territories, and it appears to the Income-tax Officer that owing to the close connection between such persons the course of business is so arranged that the business done by the resident person with the person not resident or not ordinarily resident produces to the resident either no profits or less than the ordinary profits which might be expected to arise in that business, the profits derived therefrom, or which may reasonably be deemed to have been derived therefrom, shall be chargeable to income-tax in the name of the resident person who shall be deemed to be, for all the purposes of this Act, the assessee in respect of such income-tax The appellant, a p...