TaxTMI 
TaxTMI 
1943 (12) TMI 9
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....and Govind Ram Tansukh Rai. For the assessment year 1934-35 and for the accounting period Sambat 1989-90 corresponding to November, 1932, to October 1933, the assessee originally was taxed on a total income of Rs. 16,272; subsequently supplementary assessment proceedings were started by the Income-tax Officer of Budaun under Section 34 of the Act with a view to assess certain income which had escaped assessment and a fresh assessment was made by him on a total income of Rs. 29,906. This figure included a sum of Rs. 12,405 found to be the profits of the two businesses mentioned above carried on outside British India by the assessee and remitted to British India during the accounting year within the meaning of Section 4 (2) of the Income-tax ....
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.... ,, 4873 Profit 5810 (3) 1988-89 (1931-32) Loss 2574 ,, 1266 Loss 1308 (4) 1989-90 (1932-33) Profit 3348 ,, 1205 Profit 4553 Net Profit 8895 The remittances made by the foreign firm at Sambhar to the home firm at Ujhani have also been determined by the Department and their statement is as follows :- Sambat Remittance Rs. 1986-87 15,475 1987-88 13,911 1988-89 4,070 1989-90 42,852 Total 76,308 Admittedly in Sambhat 1989-90 which is the accounting year of the assessee in dispute the remittance was made of Rs. 42,852 by the foreign business of the assessee to the home business. There is al....
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....R.P.L. Family v. Commissioner of Income-tax, Burma [1935] 9 ITC 158. These cases are undoubtedly an authority for the proposition that if the proved or admitted profits of a particular assessee in his foreign business exceeded the remittances made by the assessee to the home office there is a presumption that remittances made by him included the profits. But the problem in this case is a somewhat different one. The profits of the foreign firm for the accounting year 1989-90 which were a sum of Rs. 4,553 could not be determined till the expiration of the year and, therefore, they could not be included, in law, in the remittances which were made during the pendency and in the course of the year. Under Section 3 of the Act, which is the cha....
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.... sum it may well have been presumed that this sum remained in the hands of the assessee undisposed of and was included in the remittance which was made in the year 1989-90 of Rs. 42,852. But we know that in the year 1988-89 the next year following the year when the profit was made there was a remittance by the assessee of Rs. 4,070 and the presumption is that this remittance was made out of the profits and it absorbed the profits of Rs. 5,810 to the limit of Rs. 4,070 leaving a balance of Rs. 1,740 and we also know that in the year 1988-89 there was a loss of Rs. 1,308 to the foreign firm with the result that the balance of the profit of Rs. 1,740 was absorbed by the loss of Rs. 1,308 and there remained only a figure of Rs. 432 available fo....
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....n earlier remittance and was absorbed by the next year's loss was not put forward in so many words before the Assistant Commissioner or the Commissioner but it is not necessary that all legal arguments in support of a contention should be put forward before the Assistant Commissioner or the Commissioner so long as the contention itself is substantially put forward and variation is permissible in regard to legal arguments in support of the contention provided they clearly and properly arise on the facts found and on the contention raised by the assessee. In any case, the stage of taking this objection is now passed in view of the decision of a Bench of this Court at a previous hearing in this case by which the Department's contention....