Law: Income Tax Act, 1922

Section: 18,18(3B),(7),42,43

Law: Constitution of Pakistan, 1973

Section: 185(3)

(a) Income-tax Act (XI of 1922)---S. 18(3-B)---Constitution of Pakistan (1973), Art. 185(3)---Leave to appeal was granted to consider the question, whether the interpretation placed by the High Court on expression "unless he is himself liable to pay any Income-tax and Super-tax thereon as an agent" employed in S. 18(3-B) of the Act was in accordance with law though another interpretation was possible. (b) Income-tax Act (XI of 1922)--- ----Ss. 18(3-B) & (7), 42 & 43---Interpretation. (c) Income-tax Act (XI of 1922)--- ----S. 18(3-B) & (7)---Any person dealing with a non-resident is liable to deduct Income-tax and Super-tax etc. at the time of making payment "unless he is himself liable to pay any Income-tax and Super-tax thereon as an agent"---If such a person does not deduct in terms of S. 18(3-B) the consequences are provided for in S. 18(7) which provide for treating him as the assessee in default and apart from the recovery of taxes also to recover interest at rate of 2'% per month on the amount of tax involved. (d) Income-tax Act (XI of 1922)--- ----S. 18(3-B)---Word "liable" in a legal context is to denote the factum that the person concerned is answerable at law and it is not necessary that his liability should have been determined by a competent forum. Littlewood v. George Wimpey & Co. Ltd. British Overseas Airways Corporation (1953)2 All ELR 915 and Roberts v. Roberts (1902) 2 All ELR 967 applied. (e) Words and phrases-- ---- Word "liable", meaning. Word "liable" indicates that it inter alia carries the meaning as "subject to an obligation", "that for which one is liable", a debt "bound or obliged in law or equity", "responsible", "chargeable", "answerable legally subject to amenable to", .compellable to make satisfaction, compensation or restitution". It is evident that the meaning of the word "liable" is not restricted to denote an absolute and fixed liability, but has the meaning expressed by phrase "within the range of possibility". Chamber's 20th Century Dictionary, p. 76; The Oxford English Dictionary, 1933 Edn., p. 234; Black's Law Dictionary, Fifth Edn., p. 824 and Corpus Juris Secundum, Vol. 53 quoted. (f) Interpretation of…

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