Receipt in taxable territories includes indirect transfer through cheque and benami accounts under the 1922 income-tax provision.

Income earlier accrued and received outside the taxable territories was held taxable when the assessee, while in Bombay, drew on the Bhavnagar account, arranged credit through cheque and benami accounts, and used the funds in Bombay. The expression "brought into or received in the taxable territories" in section 4(1)(b)(iii) of the Income-tax Act, 1922 was applied in substance rather than form, and an indirect banking route did not prevent the transfer from amounting to receipt by the assessee.

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Issues: Whether the assessee's accumulated income, withdrawn from Bhavnagar and credited in Bombay through a cheque and benami accounts, was "brought into or received in the taxable territories" within the meaning of section 4(1)(b)(iii) of the Income-tax Act, 1922.

Analysis: The income had accrued and been received outside the taxable territories before the previous year, but the assessee, while in Bombay, drew a cheque on the Bhavnagar account, caused it to be credited in Bombay, and thereby used the money for an advance to the Bombay concern. The statutory expression "brought into or received in the taxable territories" was held to be satisfied on these facts. The receipt need not be the first receipt in the context of section 4(1)(b)(iii), and an indirect method of transfer does not prevent the transaction from amounting to receipt by the assessee himself.

Conclusion: The amount was chargeable to tax as income brought into or received in the taxable territories by the assessee under section 4(1)(b)(iii) of the Income-tax Act, 1922, and the question was answered in the affirmative.

Ratio Decidendi: For section 4(1)(b)(iii) of the Income-tax Act, 1922, income earlier accrued and received outside the taxable territories is taxable when, in substance, it is brought into or received in the taxable territories by the assessee, even through an indirect banking or benami mechanism.

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