Realisation of trust receipts in India defeated exemption where trustees acted as agents in remitting funds abroad.

Amounts received under the trust were held to be realised in India, because the trust deed and tripartite agreement required payment in India and the trustees remitted the sums to London only as the assessees' agents. The finding that the remittance arrangement reflected agency, and was supported by evidence, was treated as a factual conclusion not shown to be perverse. On that basis, the receipts did not qualify as amounts realised outside India, and exemption under section 5(o)(ii) of the Expenditure-tax Act, 1957 was unavailable.

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Issues: Whether the amounts received by the assessees under the trust were realized outside India so as to qualify for exemption under section 5(o)(ii) of the Expenditure-tax Act, 1957.

Analysis: The trust deed, read with the tripartite agreement, required payment in India. The Tribunal found, on the surrounding facts, that the trustees remitted the amounts to London under the assessees' instructions and were acting as their agents. That was a finding of fact, and it was not shown to be perverse or unsupported by evidence. On that basis, the realization was treated in law as having occurred in India.

Conclusion: The assessees were not entitled to exemption under section 5(o)(ii) because the amounts were realized in India, not outside India.

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