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PETITIONER: MEENAKSHI MILLS, MADURAI
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX,MADRAS.
DATE OF JUDGMENT: 26/09/1956
BENCH: AIYYAR, T.L. VENKATARAMA BENCH: AIYYAR, T.L. VENKATARAMA DAS, SUDHI RANJAN (CJ) IMAM, SYED JAFFER
CITATION: 1957 AIR 49 1956 SCR 691
ACT: Income-tax-Reference to High Court-Question of law-Inference from findings of fact, when a question of law-Test-Profits earned by the assessee Company by sale of goods entered in the names of dummy firms and Companies-Benami, Meaning of- Finding of the status of such firms and Companies, if and when material-Accrual of liability-Manner of dealing with the profits by a registered Company, if affects its liability-Apportionment of profits between place of manufacture and place of sale, if a question of law-Indian Income-tax Act, (XI of 1922), ss. 66(1), 42(1), 42(3).
HEADNOTE: A finding of fact, even when it is an inference from other facts found on evidence, is not a question of law within the meaning of s. 66(1) of the Indian Income Tax Act that can be referred to the High Court for its decision. Such an inference can be a question of law only when the point for determination is a mixed question of law and fact. On the principles established by authorities, only such questions as relate to one or other of the following matters can be questions of law under the section:- (1) th...