Place of receipt of commission income determined by actual delivery at Secunderabad, not by banking transmission through British India.

Commission payable at Secunderabad was held not to be received in British India because the cheques were delivered at Secunderabad, immediately credited through local bankers, and the receipt acknowledgements were issued there. The absence of any express or implied request by the assessee that the cheques be posted meant that mere drawing on British India banks or forwarding through bankers did not shift the place of receipt. On these facts, the income was treated as not received in British India, and the reference was answered in favour of the assessee.

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Issues: Whether commission amounts received by cheque at Secunderabad were income received in British India for income-tax purposes.

Analysis: The commission was payable at Secunderabad under the parties' arrangement. The cheques were received at Secunderabad, immediately credited through the assessee's local bankers, and the receipts acknowledging discharge were issued from Secunderabad. The evidence did not show any express or implied request by the assessee that the cheques be sent by post, and the mere fact that the cheques were drawn on banks in British India or forwarded through bankers did not make the place of receipt British India. On the facts, the decision treating posting as receipt could not be applied.

Conclusion: The commission income was not received in British India and the reference was answered in the negative, in favour of the assessee.

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