1967 (10) TMI 14

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nstance of the Commissioner of Income-tax, M.P. The question which has been formulated by the Income-tax Appellate Tribunal for our decision, is : " Whether, on the facts and in the circumstances of the case, there was any receipt of sale proceeds of Rs. 11,43,712 and Rs. 47,20,885 on behalf of the assessee in the taxable territories so as to justify assessment of the profits included therein u....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... along with the bills of exchange and railway receipts, were endorsed and handed over to bankers at Indore and to M/s. Laxmichand Muchhal of Indore. The local bankers and M/s. Laxmichand Muchhal allowed full credit to the assessee on the day they received the railway receipts with the D. Ds. or bills of exchange. The bankers and M/s. Laxmichand Muchhal did not charge the assessee any interest for ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... these transactions was not received in taxable territories. The facts and circumstances in which this reference has been made are similar to those found in Commissioner of Income-tax v. Laxmichand Muchhal. In Muchhal's case also, a similar question was propounded for decision and that was : " Whether, on the facts and in the circumstances of the case, the profit along with interest of Rs. 3....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... to the person on whom it is drawn and receiving the money from him for its customer, and the position of the bank as a holder for value of the instrument is not converted into one as an agent for collection on behalf of the customer merely because in the event of default in payment by the person in whose name the negotiable instrument is drawn the bank is entitled to the statutorily prescribed pr....