https://www.taxtmi.com/caselaws?id=290252 Profits are taxed where they are actually earned, and the mere sourcing of goods from British India or the existence of connected branch operations there does not make the income accrue or arise in British India. On the facts, the ultimate gains from the Baroda State shops were realised in the Baroda State, so the proposed levy sought to tax income outside British India and was without jurisdiction. An assessment made beyond statutory authority is ultra vires, and in that setting the bar against suits under section 39 did not prevent challenge. The suits were therefore maintainable. en-us Wed, 19 Aug 1925 00:00:00 +0530 Wed, 16 Sep 2020 11:10:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290252 Profits are taxed where they are actually earned, and the mere sourcing of goods from British India or the existence of connected branch operations there does not make the income accrue or arise in British India. On the facts, the ultimate gains from the Baroda State shops were realised in the Baroda State, so the proposed levy sought to tax income outside British India and was without jurisdiction. An assessment made beyond statutory authority is ultra vires, and in that setting the bar against suits under section 39 did not prevent challenge. The suits were therefore maintainable. Case-Laws Income Tax Wed, 19 Aug 1925 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290252