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TMI Blog1965 (12) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ia. After the Indian Independence Act the advance tax was liable to be adjusted against two regular assessments, one by India and one by Pakistan. In Pakistan, under section 18A(11), the Pakistan Government was entitled to adjust the advance tax paid by the assessee against its demand. Similarly, the Government of India was entitled to adjust the amount against its demand. It follows that if the assessee has been given credit for the advance tax by the Pakistan Government, he cannot claim that credit should be given to him by the Indian income-tax authorities. The effect of the Indian Independence Act was not to double the advance money the assessee had paid. The amount of money he paid as advance tax remained the same. Having been given cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the calendar year ending 31st December, 1946. 3. The assessee is a public limited company dealing in the manufacture and sale of stationery goods. Before the partition of the country the company's registered office as well as the head office was at Lahore. The assessment for the year 1947-48 was completed by the Pakistan Income-tax Officer on the 28th January, 1948, completely ignoring the Agreement for the Avoidance of Double Taxation of Income between the Pakistan and the Indian Governments. The assessment for the year 1947-48 was also made by the Income-tax Officer, 3rd Additional Business Circle, New Delhi, on a figure of ₹ 38,916. It is common ground that the assessee had paid advance tax under section 18A of the Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the total tax payable by the assessee at ₹ 76,472-6-0. As a result of this assessment, even after setting off the tax paid under section 18A of ₹ 47,513 still an amount of ₹ 20,000 was still due from this assessee. The amount under section 18A has, therefore, been adjusted by the Pakistan authorities towards the payment of tax and the assessee cannot take credit for this amount again. Under these circumstances, it must be held that there was no balance of tax paid under section 18A left to be adjusted by the Income-tax Officer for the Indian assessment. The assessee filed an appeal before the Appellate Tribunal. The Tribunal allowed the claim on the ground that the language of section 18A(11) was mandatory, and it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the appellant, contends before us that by virtue of section 18(3) of the Indian Independence Act, the Income-tax Act, as it existed before the coming into force of the Indian Independence Act, applied both to the Dominion of Pakistan and the Dominion of India, and the result of this simultaneous application to both the Dominions was that the advance tax paid by the. assessee was liable to be adjusted against the assessments made both in Pakistan and in India, and Pakistan having made the adjustment, there was no money left to be adjusted against the assessment in India. The learned counsel for the respondent relies on the reasoning of the High Court and on Dwarka Dass v. Income-tax Officer, Kanpur and says it was the obligation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him by the Indian income-tax authorities. The effect of the Indian Independence Act was not to double the advance money the assessee had paid. The amount of money he paid as advance tax remained the same. Having been given credit by the Pakistan Government he could not claim that there was any amount left on which section 18A(11) could operate. Dwarka Dass's case relied on by the learned counsel for the assessee is distinguishable because that case proceeded on the assumption that no regular assessments had been made in Pakistan for the relevant years and only some assessment proceedings were pending. It was also common ground that excess payments had been made by the petitioner in that case under section 18A of the Indian Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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