https://www.taxtmi.com/caselaws?id=277309 In a manufacturing business, the purchase of raw material in British India was held to be an operation within Section 42(3) because it formed an essential part of the connected process that generated profit. Profit could be attributed to that purchase operation, even though no immediate trading profit arose at the purchase stage. Where the assessee did not produce primary accounts, the taxing authority could estimate income on available material under Rule 33, and the purchase figures were sufficient to support a reasonable apportionment of profits to the British India operations. The reference was answered in favour of the Revenue on all questions. en-us Thu, 21 Jul 1949 00:00:00 +0530 Sat, 01 Dec 2018 10:33:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277309 In a manufacturing business, the purchase of raw material in British India was held to be an operation within Section 42(3) because it formed an essential part of the connected process that generated profit. Profit could be attributed to that purchase operation, even though no immediate trading profit arose at the purchase stage. Where the assessee did not produce primary accounts, the taxing authority could estimate income on available material under Rule 33, and the purchase figures were sufficient to support a reasonable apportionment of profits to the British India operations. The reference was answered in favour of the Revenue on all questions. Case-Laws Income Tax Thu, 21 Jul 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277309