https://www.taxtmi.com/caselaws?id=179934 Sale proceeds collected in British India by managing agents were treated as receipts of profits under mercantile accounting because realised trade receipts may include profit even before final accounts are drawn, and the receipts were credited to the business and used in its operations. The Court also held that a continuous managing agency arrangement involving purchase of raw materials, sale of manufactured goods, collection of proceeds, disbursements, and banking functions constituted a business connection in British India. Further, a reasonable part of the profits was attributable to the raw-material purchasing operations carried on there. Taxability was therefore upheld on both receipt and business-connection grounds. en-us Thu, 08 Dec 1949 00:00:00 +0530 Sat, 12 Mar 2016 12:15:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179934 Sale proceeds collected in British India by managing agents were treated as receipts of profits under mercantile accounting because realised trade receipts may include profit even before final accounts are drawn, and the receipts were credited to the business and used in its operations. The Court also held that a continuous managing agency arrangement involving purchase of raw materials, sale of manufactured goods, collection of proceeds, disbursements, and banking functions constituted a business connection in British India. Further, a reasonable part of the profits was attributable to the raw-material purchasing operations carried on there. Taxability was therefore upheld on both receipt and business-connection grounds. Case-Laws Income Tax Thu, 08 Dec 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179934