Place of receipt of income by cheque unchanged by immaterial handling differences, with receipt treated as in British India.

Income from sales to the Government of India was treated as received in British India for the purposes of section 4(1)(a) of the Income-tax Act, 1922. The Court held that differences such as non-negotiable cheques, no bank credit before collection, and no separate finding of credit on receipt did not change the legal position because the facts were materially similar to a companion appeal already decided. The answer to the referred question was therefore given in the affirmative, in favour of the Revenue.

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Issues: Whether income, profits and gains in respect of sales made to Government of India were received in British India within the meaning of Section 4(1)(a) of the Income-tax Act, 1922.

Analysis: The facts were treated as materially similar to those in the connected appeal already decided. The differences relied upon, namely that the cheques were non-negotiable, no credit was given by the bank before collection, and no separate finding existed that the assessee credited the Government on receipt of the cheques, were held not to affect the answer to the referred question. The matter was accordingly governed by the reasoning adopted in the companion appeal.

Conclusion: The question was answered in the affirmative and the receipt was held to have taken place in British India, in favour of the Revenue.

Ratio Decidendi: Where the material facts are covered by an earlier decision on the same question, immaterial variations in the mode of cheque handling do not alter the legal conclusion on the place of receipt of income.

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