1962 (11) TMI 79

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..... ibunal at the instance of the Commissioner of Income-tax, and it arises out of the assessment of income-tax concerning the assessment year 1947-48. The assessee company had its registered office in Lahore before the. partition. Between June, 1946, and March, 1947, the assessee paid to the Income-tax Officer at Lahore advance tax under section 18A of the Indian Income-tax Act amounting, in all, .....

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..... of section 18A(11) of the Indian Income-tax Act, the assessee was entitled to credit for the sum he had paid at Lahore and was further entitled to a refund of the excess. On this view the Appellate Tribunal directed the demand against the assessee to be quashed and appropriate refund to be made. The Commissioner of Income-tax then applied to the Income-tax Appellate Tribunal to refer the questions .....

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..... he advance payment of tax was made at Lahore, the Indian Income-tax Act was applicable to Lahore, so that the payment must be taken to have been made under the Indian Income tax Act. Sub-section (11) of section 18A of the Act says: Any sum other than a penalty or interest paid by or recovered from an assessee in pursuance of the provisions of this section shall be treated as a payment of tax .....

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..... , but, apart from that decision, the language of the Income-tax Act, section 18A, does not leave much room for the contrary view. Mr. Hardy for the Commissioner of Income-tax urges that although the advance tax was adjustable against the demand raised against the assessee on a regular assessment, such adjustment was not in the present case possible. Before then the Pakistan income-tax authoriti .....

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..... therefore, right in holding that the assessee was entitled to credit for the advance tax which had been paid at Lahore under the Indian Income-tax Act and, since the advance tax actually paid was in excess of the tax found due on regular assessment, the assessee was entitled to a refund of the difference. I would, in the circumstances, answer both the questions in the affirmative and allow the as .....

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