Law:

Section:

Section 209 of the Income-tax Act, 1961 [Corresponding to section 18A(1)(a) of the Indian Income-tax Act, 1922] - Advance tax - Computation of - Assessment year 1952-53 - Assessee was a partner in a firm - For assessment year 1949-50, firm was assessed in status of unregistered firm and assessment of assessee was also completed - for assessment year 1950-51, firm was again assessed in status of unregistered firm - Whether assessment of unregistered firm for year 1950-51 could not be treated as assessment of assessee partner, within meaning of section 18A(1) of 1922 Act - Held, yes - Whether, therefore, notice issued by ITO under section 18A of 1922 Act calling upon assessee to pay advance tax for assessment year in question on basis of his income for assessment year 1949-50 was legally valid - Held, yes FACTS The assessee was a partner in a firm. For the assessment year 1949-50, the firm was assessed in the status of an unregistered firm by order dated 30-9-1950. The assessment of the partners including the assessee were also completed on the same date. For the assessment year 1950-51, assessment of the firm was completed in the status of an unregistered firm by order dated 28-4-1951. Thereafter, on 23-7-1957 a notice was issued against the assessee under section 18A(1) for advance payment of income-tax for the assessment year 1952-53 on the basis of the assessment order dated 30-9-1950, for the assessment year 1949-50. It was contended on behalf of the assessee before the Tribunal that the issue of the notice under section 18A(1) ought to have been made on the basis of the assessment of the unregistered firm, for the assessment year 1950-51. It was submitted on behalf of the assessee that the issue of the notice under section 18A(1) on the basis of the assessments order, for the assessment year 1949-50 was legally invalid. The argument was rejected by the Tribunal and the appeal of the assessee was dismissed. On reference : HELD It is manifest that section 18A(1) empowers the ITO to require advance payment of tax from the assessee of an amount equal to one quarter of the income-tax and super-tax payable 'on so much of such income as is included in his total…

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