COMMISSIONER. OF INCOME-TAX, WEST BENGAL I vs NATIONAL AND — 1971 PTD 659

Citation: 1971 PTD 659

Court: Calcutta High Court

Year: 1970

Decision Date: 1970-12-31

Parties: COMMISSIONER. OF INCOME-TAX, WEST BENGAL I vs NATIONAL AND JUDGMENT

Headnotes

Case cited as 1971 PTD 659

Judgment Text

Court Name: Calcutta High Court Judge(s): K. L. Roy, P. B. Mukharji Title:COMMISSIONER. OF INCOME-TAX, WEST BENGAL I vs NATIONAL AND JUDGMENT Reported As: 1971 PTD 659 Result: question is in the negative Judgment JUDGMENT P. B. MUKHARII, J.-This reference under section 66(1) of the Indian Income-tax Act raises the following questions for an answer: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions of section 42(1) of the Indian Income-tax Act, 1922, had no application to the assessee's case in respect of the interest received on overdraft granted to the Calcutta Electric Supply Corporation Ltd.? (2) Whether the computation of the amounts of taxable interest in the case of the tea company as made by the Appellate Assistant Commissioner and confirmed by the Tribunal was in accordance with law?" The facts giving rise to these questions are briefly as follows: The assessm ent years are 1953-54 and 1954-55 for which the previous years are the calendar years 1952 and 1953 respectively. The assessee is a sterling banking company and has been assessed as a non-resident in both the years in question. During the relevant years interest amounting to --35,576'95 and --42,638'23 were received by the assessee in the United Kingdom from Messrs Calcutta Electric Supply Corporation, which is a company incorporated in England with its head office in London and was during the relevant periods carrying on business of…

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