Business connexion taxation under Indian income law extends charge to deemed profits and permits assessment through the resident agent.

The Indian Income Tax Acts were construed to tax income accruing, arising, or deemed to accrue or arise in British India, including profits attributable to a business connexion with a non-resident. Sections 33(1) of Act VII of 1918 and 42(1) of Act XI of 1922 were treated as deeming provisions that brought such income within charge and permitted assessment through the resident agent, rather than serving only as machinery. The broader statutory language was distinguished from English authorities, and manufacturing activity at Wyndhamgunj was also treated as falling within the charging provisions as business in British India.

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Issues: Whether income accruing or arising to a non-resident through or from a business connexion in British India was chargeable to income tax under the Indian Income Tax Acts, and whether the relevant provisions operated as charging provisions rather than mere machinery provisions.

Analysis: The statutory scheme was held to tax income on the basis of where it accrued, arose, or was received, including income deemed by the Act to accrue or arise in British India. Section 33(1) of Act VII of 1918 and Section 42(1) of Act XI of 1922 were construed as creating a deeming rule that brought within charge profits or gains attributable to a business connexion in British India, while also enabling assessment through the agent. The Court distinguished the English authorities because the Indian Acts used broader language and did not confine liability to profits from a trade exercised within the territory. The factory at Wyndhamgunj independently fell within the charging provisions as manufacturing business in British India.

Conclusion: The non-resident company's income was chargeable to tax, and the reference was answered in favour of the Revenue.

Final Conclusion: The Indian statutes were held to extend taxation to profits or gains attributable to a business connexion in British India, and the company was held liable to income tax on that basis, including income from the manufacturing branch.

Ratio Decidendi: Where the taxing statute expressly deems profits or gains arising through or from a business connexion in British India to accrue or arise there, such income falls within the charge to tax and may be assessed through the resident agent.

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