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1965 (12) TMI 26 - SUPREME COURTWhether the assessee was entitled to have an adjustment of the advance tax paid by it under section 18A of the Indian Income-tax Act in Lahore for the assessment year 1947-48, against the demand of tax raised by the Income-tax Officer, 3rd Additional Business Circle, New Delhi, for the assessment year 1947-48 ? Held that:- In our opinion the effect of section 18(3) of the Indian Independence Act was to change the incidents of the advance tax paid. Previously the advance tax was to be adjusted towards a single regular assessment to be made by British India. 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 credit by the Pakistan Government he could not claim that there was any amount left on which section 18A(11) could operate. The answer to the questions should be in the negative and against the assessee. Appeal allowed.
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