https://www.taxtmi.com/caselaws?id=291583 A sum paid at Penang by an assessee's shop to a creditor of an Indian firm was treated as a remittance of foreign profits received in British India under section 4(2) of the Income-tax Act, 1922. The transaction was not viewed as a mere foreign transfer of indebtedness; rather, the Indian debt was discharged by issuing hundies on the Penang shop, so in commercial substance it amounted to the use in British India of funds available outside India. The distinction from the cited foreign authority was that this involved discharge of an Indian debt by a hundi issued in India, not a simple book adjustment. The amount was therefore treated as remitted foreign profit. en-us Wed, 18 Sep 1935 00:00:00 +0530 Wed, 18 Nov 2020 11:04:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291583 A sum paid at Penang by an assessee's shop to a creditor of an Indian firm was treated as a remittance of foreign profits received in British India under section 4(2) of the Income-tax Act, 1922. The transaction was not viewed as a mere foreign transfer of indebtedness; rather, the Indian debt was discharged by issuing hundies on the Penang shop, so in commercial substance it amounted to the use in British India of funds available outside India. The distinction from the cited foreign authority was that this involved discharge of an Indian debt by a hundi issued in India, not a simple book adjustment. The amount was therefore treated as remitted foreign profit. Case-Laws Income Tax Wed, 18 Sep 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291583