Presumption of assessable profit governs foreign remittances where the assessee fails to prove the sums were capital.

Remittances from a foreign business to its head office in British India were treated as prima facie profits, not capital, unless the assessee proved otherwise. The burden of establishing that the amounts were capital or otherwise not assessable lay on the assessee, and the Commissioner's rejection of that contention was reached without misdirection on the governing principle. The remaining conclusions were treated as findings of fact and were not open to interference. The presumption of assessable profit was therefore upheld, and the assessee failed to discharge the burden of proof.

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Issues: Whether remittances from a foreign business to the head office in British India were to be treated prima facie as profits and whether the assessee had discharged the burden of proving that the amounts were capital or otherwise not assessable.

Analysis: The remittances were held to attract a presumption that they represented profits rather than capital, and the burden lay on the assessee to establish the contrary. The Commissioner had considered the assessee's contention and, without any misdirection as to the applicable principle, was not satisfied that the claim had been proved. In such circumstances, the remaining findings were treated as findings of fact and not open to interference.

Conclusion: The presumption of assessable profit was upheld, the assessee failed to discharge the burden of proof, and the findings stood undisturbed.

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