https://www.taxtmi.com/caselaws?id=181710 A regular and continuous agency in British India for purchasing essential raw materials can constitute a business connection under Section 42(1) of the Income-tax Act, 1922, because it goes beyond isolated transactions and reflects an ongoing relationship contributing to profit generation. Where part of the profit-making operations is carried on in British India, Section 42(3) permits apportionment of foreign profits to the extent reasonably attributable to those Indian operations. Systematic purchases of cotton through authorised agents were treated as an integral part of the business process, making the related profits apportionable to tax. en-us Wed, 18 Jan 1950 00:00:00 +0530 Fri, 22 Apr 2016 13:08:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=181710 A regular and continuous agency in British India for purchasing essential raw materials can constitute a business connection under Section 42(1) of the Income-tax Act, 1922, because it goes beyond isolated transactions and reflects an ongoing relationship contributing to profit generation. Where part of the profit-making operations is carried on in British India, Section 42(3) permits apportionment of foreign profits to the extent reasonably attributable to those Indian operations. Systematic purchases of cotton through authorised agents were treated as an integral part of the business process, making the related profits apportionable to tax. Case-Laws Income Tax Wed, 18 Jan 1950 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=181710