TaxTMI 
TaxTMI 
1967 (4) TMI 10
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....n January 30, 1951. The Income-tax Officer accepted the claim of the assessee that he was a non-resident during the previous year relevant to the assessment year 1945-46 and assessed him accordingly. In November, 1951, the assessee commenced trading in Calcutta in the Province of West Bengal. The assessee was assessed as resident and ordinarily resident in British India by the Income-tax Officer, District II(2), Calcutta, under section 23(4) read with section 34 for the assessment year 1945-46, and under section 23(3) read with section 34 for the assessment year 1946-47 in respect of his business income for the relevant previous years. The Appellate Assistant Commissioner reversed the orders passed by the Income-tax Officer. The Income-t....
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....he assessee was a resident in British India during the relevant previous year? (3) Does an occasional or casual visit in connection with the assessee's business make the assessee resident within the purview of section 4A(a)(iii) ? " The High Court recorded answers to the first two questions in the negative, and declined to answer the third question. The Commissioner of Income-tax has appealed against the decision of the High Court on the second question. There is no appeal before us by the assessee against the answer to the first question. Section 4A(a)(iii) of the Income-tax Act, 1922, in the relevant years of assessment read as follows : " For the purposes of this Act --- (a) any individual is resident in British India in a....
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....ad to determine the truth of that plea. The assessee addressed a letter to the Income-tax Officer on February 14, 1955, regarding his assessment for the year 1945-46 stating : " ... In the year under assessment I had never been to British India and, hence, I do not come under the jurisdiction of the Indian Income-tax Act in the said year as I had no income in India at that time. ... Please also note that during the year in question I made no remittance to India and, hence, your query as to whether the remittance relates to a remittance of capital or remittance of profit does not arise. " On November 5, 1956, the assessee submitted an affidavit stating that " during the period of my departure from India I had only few casual visi....
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....was sent in cash to Indo-Europa Trading Company in connection with the purchase of machinery, but he claimed that the money was sent with his cashier, Patwardhan. Called upon to state whether he had any evidence to show how the money was sent to Indo-Europa Trading Company, the assessee stated that he " can call " Patwardhan and the Tribunal " can put questions " to Patwardhan. He asserted that he had no business transactions in Bombay in the year 1946. The Tribunal in its order observed : " We have had the advantage of having had the assessee before us examined by the departmental representative with regard to the assessee's contention that his visits to the taxable territory during the accounting years were casual. In this we had the a....
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....or casual, but a visit in connection with the business carried on by the assessee may not normally be regarded as occasional or casual. The assessee carried on the trade of a printer in Hyderabad. He had in connection with that trade to deal with business houses in Bombay ; this was admitted by the assessee. He had made remittances to Bombay in both the years---the first remittance was by a bank draft and the second in cash. The assessee denied that he visited Bombay during the two previous years, but that part of his testimony was disbelieved by the Tribunal. Mr. Chatterjee contended that the assessee had claimed that an amount of Rs. 12,000 sent to Indo-Europa Trading Company, Bombay, though sent in cash, was delivered by Patwardhan....