https://www.taxtmi.com/caselaws?id=49640 Section 42(2) of the Indian Income-tax Act, 1922 was construed as charging the resident's business where close connection with non-residents caused profits to be nil or less than ordinary profits, so the deeming provision could sustain tax on the resident appellant. The phrase "carrying on business with" was given a broad fiscal meaning: continuous, organised dealings under a special repair arrangement were sufficient, and not merely isolated purchases. On that basis, the non-resident companies were treated as carrying on business with the appellant, the statutory conditions were satisfied, and the assessments were upheld. en-us Mon, 12 May 1958 00:00:00 +0530 Fri, 05 Sep 2014 16:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49640 Section 42(2) of the Indian Income-tax Act, 1922 was construed as charging the resident's business where close connection with non-residents caused profits to be nil or less than ordinary profits, so the deeming provision could sustain tax on the resident appellant. The phrase "carrying on business with" was given a broad fiscal meaning: continuous, organised dealings under a special repair arrangement were sufficient, and not merely isolated purchases. On that basis, the non-resident companies were treated as carrying on business with the appellant, the statutory conditions were satisfied, and the assessments were upheld. Case-Laws Income Tax Mon, 12 May 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49640