Madhya Pradesh Court October 1967 Judgments

Commissioner of Income-tax M. P. Vs. Shivanarayan Harigopal.

Court: Madhya Pradesh

Reported in: [1968]70ITR545(MP)

This is a reference under section 66 (1) of the Indian Income-tax Act, 1922, at the instance of the Commissioner of Income-tax, M. P. The question which has been formulated by the Income-tax Appellate Tribunal for our decision, is :'Where, 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 include therein under section 4(1) (a) of the Indian Income-tax Act, 1922 ?'The assessee, Shri Shivnarayan Harigopal, Indore, is an unregistered firm. In the accounting year from 20th June, 1947, to 8th July, 1948, it carried on business in the sale and export of cloth at Indore, which was then in non-taxable territory. In that year, there was an all-India control over the disposal of cloth. On receiving allotment orders for supply of cloth in Indore market, paid the price of the same and shocked the cloth purchased in its godowns fo...