COMMISSIONER OF INCOME-TAX (CENTRAL),NEW DELHI vs M/S. S. ZORASTER & COMPANY

The Supreme Court addressed the issue of whether amounts represented by cheques cashed at Bombay were taxable under the Income-tax Act, 1922. The Court upheld the High Court's finding that the cheques were received by the assessee outside the taxable territory, thus not subject to taxation. The Court clarified that the Revenue failed to prove the posting of cheques at Delhi, and therefore, no presumption under Section 114 of the Evidence Act could be drawn. The appeal was dismissed, and the High Court's certificate for appeal was set aside.