Receipt in British India of moneys worth: assignment of an enforceable decree and jewels constituted taxable receipt despite no cash.

Whether an assignment in British India of a British Indian decree and jewels in satisfaction of a foreign business debt constitutes receipt in British India was resolved by applying the principle that assets received in kind which are realisable or represent moneys worth amount to remittance or receipt. The court held that acceptance of jewels and an assignable, enforceable decree reduced the foreign business assets and increased British India assets; because both were convertible into money, the assignment operated as a transfer of moneys or moneys worth into British India and was taxable accordingly.

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Issues: Whether the assignment in British India of a British Indian decree discharging a debt due to the assessee's foreign business amounts to an actual receipt in British India of moneys or moneys worth at the time of assignment, even though no cash was realised from the judgment debtor.

Analysis: The assessee received jewels in British India and an assigned British Indian decree in satisfaction of a debt due to his Penang money-lending business, thereby reducing the assets of the foreign business and increasing assets in British India by the value of those receipts. Assets received in kind that are realisable or represent moneys worth constitute remittance or receipt in British India. The assignment of a decree which is capable of realisation and which discharges the foreign debt operates as a transfer into British India of moneys or moneys worth, even if the assigned decree was not immediately enforced for cash; the consideration received (jewels and the decree) was convertible into money and therefore amounts to receipt for assessment purposes.

Conclusion: Yes. The assignment and acceptance of jewels and the decree amounted to an actual receipt in British India of moneys or moneys worth; the tax assessment inclusive of the relevant sum is upheld in favour of the Revenue.

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