Law:

Section:

Section 220, read with section 221 of the Income-tax Act, 1961 [Corresponding to section 45, read with section 46 of the Indian Income-tax Act, 1922] - Collection and recovery of tax - When tax payable and when assessee deemed in default - Whether proviso to section 45 of 1922 Act applies to foreign income which is wholly prohibited or restricted subject to conditions imposed by law of that foreign country, from being remitted to taxable territories - Held, yes - Whether, therefore, inability to remit income to taxable territories should have been by reason of such prohibition or restriction - Held, yes - Petitioner/assessee, a resident of India earned certain income in Ceylon (outside India) - ITO made demand on assessee for payment of tax on said income - Government of Ceylon, however, issued notification prohibiting transmission of monies outside territories of Ceylon - Petitioner's application for transmitting foreign income into taxable territories was, therefore, rejected - Whether since petitioner was not able to remit his foreign income by reason of restrictions imposed by Ceylon authorities, he could not be regarded as defaulter in respect of part of tax which was due in respect of that foreign income - Held, yes - Whether, therefore, revenue authorities had no power to collect that part of tax by initiating proceedings under sections 45 and 46 of 1922 Act - Held, yes FACTS The petitioner was a merchant carrying on business outside India and was residing at Madras. For the relevant assessment year, the 1st Addl. ITO made an order assessing him to a tax Rs. 28,575. By the said order, his total income was fixed at the sum of Rs. 71,484 which included his total foreign income of Rs. 69,569. The foreign income was held to have been earned by him in Ceylon. The petitioner paid from time to time sums totaling Rs. 13,000 towards the tax and penalty imposed for non-payment of the tax and the balance due from him was Rs. 15,153. The ITO made a demand on the assessee for payment of the tax assessed. As the amount was not paid, the 1st respondent, holding that the petitioner had committed default, forwarded to the Collector a certificate, specifying the amount of…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492