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PETITIONER: THE AGGARWAL CHAMBER OF
Vs.
RESPONDENT: M/s GANPAT RAI HIRA LAL
DATE OF JUDGMENT: 11/11/1957
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. SINHA, BHUVNESHWAR P.
CITATION: 1958 AIR 269 1958 SCR 938
ACT: Income-tax--Assessment of agent in respect of profits held for non-resident Principal--Agent’s right to claim deduction for payment made-Ultimate liability of principal to income- tax on basis of his world income, if a relevant considaration--Indian it Income-tax Act, (XI Of 1922), ss. 40(2), 42(1).
HEADNOTE: The appellant company and the respondent firm were carrying on business in the erstwhile patiala State, and were non- residents in British India. The appellant, acting as commission agent for the respondent, entered into several forward transactions with a Hapur firm of commission agents. The profits accruing on these transactions amounted to Rs. 29,275-2-6 on which the Hapur firm paid a sum Of Rs. 9,314- 13-4 as income. tax. In 1943 the appellant was ordered to be wound up and the respondent was placed on the list of contributories. The Official Liquidator applied to the Liquidation judge for a payment order for a sum which included the amount of income-tax paid by the Hapur firm for and on behal...