COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH HYDERABAD vs TOSHOKU LTD., GUNTUR ETC.

The Supreme Court held that under Sections 5(2), 9(1)(i), 160, 161, and 163 of the Income Tax Act, 1961, credit entries in the books of a statutory agent do not constitute receipt for non-resident assessees unless the amounts are at their disposal. The Court distinguished P. V. Raghava Reddi & Anr. v. Commissioner of Income-tax, asserting that non-resident assessees, acting as selling agents outside India, did not carry out business operations in India, and thus their commission could not be deemed to have accrued or arisen in India. The appeal by the Revenue was dismissed, affirming that the commission amounts were not assessable to income tax in India.