1958 (3) TMI 76

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..... Joshi with R. J. Joshi JUDGMENT Chagla, CJ. This is one of those rare references which fortunately present no difficulty. The assessee was doing business of selling and exporting cotton and among the places it exported cotton to were Hongkong and Shanghai and it had dealings with the firm of K.S. Pavri & Sons at Hongkong. There was a consignment which was sent to K.S. Pavri and Sons and....

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....S. Pavri & Sons, Hongkong, are non-residents and Mr. Palkhivala has fairly conceded that it is not possible for him to dispute the finding arrived at by the Tribunal that the sum of Rs. 1,16,000 was an income which accrued to the non-resident in the taxable territories. The only contention that has been put forward by Mr. Palkhivala is that, in view of section 42 of the Income-tax Act, the agent i....

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....der is whether the assessee was responsible to pay Rs. 1,16,000 to a person who was not resident in the taxable territories; and the only way that Mr. Palkhivala has sought to get out of the ambit of this section is by pointing out that under certain letters written by the non-resident firm the assessee was asked to make payment to the Bombay firm and, therefore, his contention is that the assesse....