TaxTMI 
TaxTMI 
1967 (10) TMI 14
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....e-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 under section 4(1)(a) of the Indian Inc....
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....ilway 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 the period during which the amount remai....
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....xable 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. 33,784 and commission of Rs. 19,179 included i....
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.... 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 protection by the customer drawing the instrument.....