HON’BLE SUPREME COURT · SOURCE-REVIEWED NOTE
Shri Jagdish Mills Ltd. v. Commissioner of Income-tax, Bombay North, Kutch and Saurashtra, Ahmedabad
Civil Appeals Nos. 681 and 682 of 1957
[1960] 1 SCR 236 ·
Indian Income-tax Act, 1922, section 4(1)(a)
Sources & disclosures includedDownload original judgment / order
3-judge bench · S. R. Das · N. H. Bhagwati · M. Hidayatullah
01 · Facts of the case
Baroda textile manufacturer supplied Government goods outside British India under contracts requiring payment by cheque. Government posted cheques from Delhi, received at Baroda and banked in Bombay or Ahmedabad. Tribunal found implied request to post and taxable-territory receipt.
Source: Primary report: SCR 238–241
02 · Discussion by the Hon’ble Court
Subsequent encashment location alone did not establish first receipt; honoured cheque payment related back to delivery. On surrounding commercial circumstances, contractual cheque payment between Delhi and Baroda implied postal transmission, making post office creditor’s agent. Mere posting without express or implied request would not suffice.
Source: Primary report: SCR 241–248
03 · Judicial decision
Implied request was established; posting in Delhi was receipt through assessee’s agent within taxable territories under section 4(1)(a).
Source: Primary report: SCR 247–248
04 · Outcome / in whose favour
Both assessee appeals dismissed with costs, one set for the two appeals.
Source: Primary report: SCR 248
05 · AKHB REVIEW POINT
Document the implied-request evidence; not every mailed cheque means taxable-territory receipt. Primary report has inconsistent assessment-year references and none is silently chosen here.
Source & verification
Download original judgment / order · Open cited source rendition
Complete 13-page Supreme Court Reports scan. Any adjoining report fragments remain in the unchanged original and are excluded from this analysis.
Statutory scope
Historical legislation expressly identified in this note. This is not a decision under the Income-tax Act, 1961 or the Income-tax Act, 2025. Verify enacted wording, commencement, transition and subsequent judicial treatment independently before modern reliance.
Later treatment
Source checked 2026-10-23. Subsequent treatment and present-law applicability have not been comprehensively checked.
Page references identify the supplied PDF; paragraph references identify the judgment unless stated otherwise.
AI disclosure & professional disclaimer
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General legal and tax research only; not legal or tax advice. Verify the complete judgment, applicable statutory version and subsequent treatment before reliance. AKHB REVIEW POINT is editorial analysis, not the Court’s holding.