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TMI Blog1929 (11) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the respondents in terms of Section 43 of the Indian Income Tax Act, 1922, that he intended to treat them as agents of the Hongkong company, and after hearing the respondents as to liability, he assessed them to Income Tax and super-tax as agents of the Hongkong company in respect of the amount of interest in the year of charge. The respondents appealed to the Commissioner under Section 30 of the Act contending that they were not liable to be so assessed, and also raising questions as to amount. The Commissioner on the hearing of the appeals held that they were properly assessed as agents for the Hongkong company, but altered the assessment as to the amount. No further question on the amount arises. The respondents in pursuance of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be the agent of the lender the Hongkong Trust Corporation, Limited, under Sections 42 and 43 of the Income Tax Act in respect of interest payable on such loan and in respect, of any income tax that may be chargeable on such interest. 3. The Court answered the questions submitted to them as follows:- (1) Yes, from a business connection, but it also arises directly under Section 4 (1) and e. 6 (iv) and (vi). (2) Yes. (3) and (4) No. because the Bombay Company is not in receipt of any such interest on behalf of the Hongkong Company as required by Section 40. (5) The relation between the two Companies is that of borrower and lender, but having regard to Section 43 the Bombay Company, though deemed to be an agent of the Hongkong ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny arrears of tax may be recovered also in accordance with the provisions of: this Act from any assets of the non-resident person which are, or may at any time come, within British India. 48. Any person employed by or on behalf of a person residing out of British India, or having any business connection with such person, or through whom such person is in the receipt of any income, profits or gains upon whom the Income Tax Officer has caused a notice to be served of his intention of treating him as the agent of the non-resident person shall, for all the purposes of this Act, be deemed to be such agent : Provided that no person shall be deemed to be the agent of a non-resident person, unless he has had an opportunity of being heard by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the intention of the Tax Officer to treat them as agents provided for has been served on them. All this being so, what says the section ? They are for all the purposes of the Act to be deemed to be such agent. Now one of the purposes of the Act is Section 42. They are therefore to be deemed to be the agent who is chargeable to income tax, are deemed to be the asses-S5e-the assessee being in terms of Section 2 (2) defined as the person by whom income tax is payable. Now when a person is deemed to be something, the only meaning possible is that whereas he is not in reality that something the Act of Parliament requires him to be treated as if he were. It follows that although the High Court was perfectly right in holding that if Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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