Place of receipt for cheque payments depends on contractual payment terms; posted cheques were received at Secunderabad, not British India.

Commission paid by cheque is received at the place where payment is contractually required to be made unless the creditor has expressly or impliedly authorised payment by post. The post office acts as the creditor's agent only where posting is authorised by agreement or conduct, in which case receipt occurs at the place of posting. On the stated facts, payment was expressly required at Secunderabad, so the cheque receipts were treated as received there and not in British India. The commission amounts were therefore not taxable as income received in British India.

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Issues: Whether commission amounts paid by cheques sent by post were received in British India or at Secunderabad for the purpose of income-tax liability.

Analysis: The Tribunal found that the cheques were received by the assessee at Secunderabad and were treated as payment in full discharge of the commission due. The decisive question was the place of receipt when payment was made by cheque posted from Madura and Bombay. Where cheques are sent by post pursuant to an express or implied authority, the post office acts as the agent of the creditor and receipt occurs at the place of posting. Here, however, the payment was expressly required to be made at Secunderabad, so the rule applicable where posting is authorised by agreement or course of conduct did not govern the case.

Conclusion: The commission was not received in British India but at Secunderabad, and the amounts were not taxable as income received in British India.

Ratio Decidendi: Where a debtor is expressly required to make payment at a specified place, payment by cheque posted from elsewhere is not received at the place of posting unless the creditor has expressly or impliedly authorised payment by post.

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