| Citation(s) |
|---|
| 1971 SLG 3130 1971 SLD 3130 = 1971 PTD 1000 |
Supreme Court of India
Civil Appeals Nos. 688 and 689 of 1968, decided on 6th September 1968.
Presented By: J. C. Shah, Y. Ramaswami and A. N. Grover, JJ
Tata Engineering and Locomotive Co. Ltd. v. Income-tax Officer, Companies Circle 1(1), Bombay (1963) 49 I T R 866 affirmed. Sukumar Mitra, Senior Advocate (S. K. Aiyar, R. N. Sachthey and B. D. Sharma, Advocates with him) for Appellant. M. C. Chagla, Senior Advocate (B. Datta, Advocate and P. C. Bhartari, Advocate for J. B. Dadachanji & Co. with him) for
Respondent.
Civil Appeals Nos. 688 and 689 of 1968, decided on 6th September 1968.
Presented By: J. C. Shah, Y. Ramaswami and A. N. Grover, JJ
Tata Engineering and Locomotive Co. Ltd. v. Income-tax Officer, Companies Circle 1(1), Bombay (1963) 49 I T R 866 affirmed. Sukumar Mitra, Senior Advocate (S. K. Aiyar, R. N. Sachthey and B. D. Sharma, Advocates with him) for Appellant. M. C. Chagla, Senior Advocate (B. Datta, Advocate and P. C. Bhartari, Advocate for J. B. Dadachanji & Co. with him) for
Respondent.
H. L. SUD, INCOME-TAX OFFICER, COMPANIES CIRCLE 1(1), BOMBAY
VERSUS
TATA ENGINEERING AND LOCOMOTIVE Co. LTD.
Law: Income Tax Act, 1922
Section: 18-A, 43
(Appeals by special leave from the judgment and order of the Bombay High Court dated April 17, 1963, in Misc. Petitions Nos. 229 and 230 of 1962). Income-tax----Non-resident-Agent-Appointment enures only for year for which appointed-Advance tax for subsequent assessment year-Cannot be demanded unless appointed for subsequent year also "For all purposes" meaning of Indian Income-tax Act, 1922, Ss. 18-A & 43. The vicarious liability imposed upon a person by his appoint ment as the statutory agent of a non-resident under section 43 of the Indian Income-tax Act, 1922, extends to the liability for the assessment year for which the appointment is made and cannot extend to the liability for any other assessment year. The expression "for all purposes" in section 43 only indicates that when an appointment is made for a particular assessment year it is good for all purposes as far as that assessment is concerned, i.e., for all purposes for imposing tax liability, determining the quantum of the liability and for recovering it. If a person is appointed the statutory agent of a non-resident under section 43 in relation to one assessment year, advance tax under section 18-A in respect of the income of the non-resident for the subsequent assessment year (though that tax is payable in the financial year) cannot be recovered from the agent unless there is a fresh appointment of that person under section 43 as a statutory agent for that subsequent assessment year as well. Although a person may fail in a particular year to resist the claim that he is an agent, circumstances may alter in the next year and he may be able to resist the claim then. Hence notice shall have to given by the Income-tax Officer for each assessment year to appoint a person as agent. JUDGMENT RAMASWAMI, J.------The respondent is a limited company incorporated under the Indian Companies Act, 1913, and carries on business of manufacturing and selling diesel trucks and bus chassis, locomotives and other heavy engineering products. The respondent manufactures diesel trucks and bus chassis in collabo ration with the German firm `Daimler Bens A. G" The business of manufacturing…