1988 (2) TMI 47

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....s tax case, the Tribunal has made a reference to this court for the opinion of this court. The assessee is a public limited company carrying on business as exporters of tea and shipping insurance agents. The assessee entered into an agreement on November 1, 1968, with the Estates and Agency Company Limited, London, England, which owns four estates in Coonoor. The agreement is appended as annexure ....

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....id into the company's account with the National and Grindlays Bank Ltd., Madras. Clause (8) states that the principal place of business of the agents shall be situated at Coonoor. Clause (1O) relates to the expenditure that would be incurred by the agents in the management of the estates. A procedure is prescribed by clause (10) for preparation of proposals and sanction of the same by the board. I....

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....he assessment under that section. That contention was negatived by the Income-tax Officer. On appeal, the Appellate Assistant Commissioner, took the view that the amount would fall under section 28(ii)(c) of the Act, and, therefore, liable to be included in the assessment. The Appellate Assistant Commissioner held that section 28(ii)(b) would not come into play. On appeal, the Tribunal took the....

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....tax Act reads thus : " (c) any person, by whatever name called, holding an agency in India for any part of the activities relating to the business of any other person at or in connection with the termination of the agency or the modification of the terms and conditions relating thereto ; " There can be no doubt that the amount in question will fall under sub-clause (c) of section 28(ii). Lea....