The assessee company carried on the business of dyeing and selling dyed yarn as Petlad in the erstwhile State of Baroda and its status during the relevant assessment years was that of a hon-resident. In respect of sales made to purchasers in what was British India the Income-tax Officer found that the sale price was received by the company at Petlad by means of cheques, drafts and hundis which were admittedly sent by post. These cheques etc., were sent back by the compauy either to its creditors in British India in payment of its liabilities or to the credit of its accounts with its bankers in British India. The assessee company claimed that as the sale price was re- ceived by it at Petlad, the profits on the aforesaid sales were not taxable in the taxable territories. The Appellate Tribunal held that the cheques etc., which were sent by the assessee to its bankers and er editors were received by them as agents of the assessee and therefore the profits were received in British India and were liable to tax. On an application made by the asse!See under s. 66(1) of the Indian Income-tax Act, 1922, the Tribunal referred the question to the High Court as to whether the profits or any part thereof were received by or on belialf of the assessee company in British India. In the statement of the case the Tribunal pointed out that no attempt had been made at a previous stage to investigate as to whether the post office had acted as the agent of the company or of the buyers. On September 23, 1955, the High Court passed an order calling for a supplemental otatement of the case and giving the parties liberty to adduce further evidence. The Tribunal, after recording evidence as directed by the High Court, sent a supplemental statement in which a finding was given that "in the circumstances of the case and on the evidence and in the 'lhsencc
