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Entitlement to claim adjustment of advance tax paid in Lahore against assessments in India. Analysis: The petitioner-company, originally incorporated in Lahore, shifted its registered office to Yamuna Nagar post-partition. The company paid advance tax under the old Act and was assessed in both India and Pakistan for the same accounting year. The dispute arose regarding the adjustment of Rs. 1,08,686-15-0, due to the petitioner from the advance tax paid in Lahore. The revenue insisted on producing a refund voucher from Pakistan for adjustment, while the petitioner argued that such a requirement was unnecessary due to practical difficulties in obtaining the voucher. The revenue contended that adjustment could only be made upon production of the refund voucher from Pakistan authorities. The petitioner maintained that the payment made in Lahore should be adjusted in India, regardless of the refund voucher. The court considered the technicality raised by the revenue as baseless, especially since there was no evidence of subsequent demands in Pakistan or any request for adjustment of the amount paid in Lahore. The court emphasized that the petitioner had paid the demanded amount in Lahore and had proven the payment of advance tax. Referring to relevant case laws, the court established that the advance tax paid in Pakistan could be adjusted against assessments in both countries post-partition. The court cited precedents where similar issues were resolved in favor of the taxpayer, emphasizing the entitlement to a refund or set-off under the Income-tax Act. The court concluded that the revenue's insistence on a refund voucher was unjustified, and the petitioner was entitled to claim the set-off/adjustment of Rs. 1,08,686-15-0. In the final judgment, the court allowed the petition, quashed the notice issued by the revenue, and made no order as to costs. The decision was based on the petitioner's legal entitlement to the adjustment of the advance tax paid in Lahore against the assessments in India, without the necessity of producing a refund voucher from Pakistan authorities.
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