9911796707
|
Home
Issues involved: The judgment involves the following issues: (i) Assessment as agent of a non-resident within the statutory period of limitation, (ii) Liability of the agent appointed under section 163 being retrospective, and (iii) Assessment of the agent in respect of all income of the non-resident not earned through the agent.
Assessment within Statutory Period of Limitation: The notice under section 148 was issued within the statutory period of two years from the end of the relevant assessment year, and the assessment completed within four years from the end of the assessment year in which the notice was served, thus meeting the statutory requirements. Liability of Agent Being Retrospective: The agent, appointed under section 163, is considered to have stepped into the shoes of the non-resident for all purposes once appointed, making the agent liable for all omissions of the non-resident prior to the agent's appointment, as per the provisions of the Indian Contract Act. Assessment of Agent in Respect of Non-Resident's Income: The income accruing to the non-resident from undisclosed sources is deemed to have accrued in India, even if the non-resident has no business connection in India, as per the provisions of section 5(2)(b) and supported by a Supreme Court decision. Therefore, such income is liable to be included in the non-resident's assessment. Conclusion: The judgment upheld the assessment made within the statutory period, affirmed the retrospective liability of the agent appointed under section 163, and allowed the inclusion of income from undisclosed sources in the non-resident's assessment, ruling in favor of the Revenue in all aspects.
|
