TMI Blog1968 (9) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... in collaboration with the German firm " Krauss Maffei A.G. " For each of the assessment years from 1955-56 to 1961-62, the Income-tax Officer issued a notice to the respondent under section 43 of the Indian Income-tax Act, 1922 (hereinafter called " the Act ") intimating that he intended treating the respondent as the agents of the two German firms. In pursuance of the notices the Income-tax Officer actually passed orders under section 43 of the Act treating the respondent as agent of the said two German firms. For the assessment year 1962-63 no notice under section 43 of the Act had been issued or served upon the respondent by the Income-tax Officer and no order under that section had been passed treating the respondent as the agent of the two German firms. On September 8, 1961, the respondent received from the Income-tax Officer notices of demand under section 29 of the Act together with an order under section 18A(1) calling upon the respondent to make advance payment of the tax for the assessment year 1962-63 as agent of the said two German firms. The tax demanded was Rs. 90,833.29 in the case of Krauss A.G. and Rs. 6,32,629.62 in the case of Daimler A. G. By its reply dated Sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which would have been payable on his total world income of the said previous year had it been his total income the same proportion as the amount of such inclusions bears to his total world income : Provided that, where the previous year of the assessee in respect of any source of income ends after the 31st day of December and before the 30th day of April, the order in writing issued by the Income-tax Officer requiring the payment of income-tax and super-tax on that source of income shall substitute for the four quarterly payments hereinbefore specified, three payments of equal amount to be made on the 15th day of September, the 15th day of December and the 15th day of March, respectively. . . (b) If the notice of demand issued under section 29 in pursuance of the order under clause (a) of this sub-section is served after any of the dates on which the instalments specified therein are payable, the tax shall be payable in equal instalments on each of such of those dates as fall after the date of the service of the notice of demand, or in one sum on the 15th day of March if the notice is served after the 15th day of December. (2) If any assessee who is required to pay tax by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Act, the assessee in respect of such income-tax : Provided that where the person entitled to the income, profits or gains is not resident in the taxable territories, the income-tax so chargeable may be recovered by deduction under any of the provisions of section 18 and that any 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 the taxable territories : Provided further that any such agent, or any person who apprehends that he may be assessed as such an agent, may retain out of any money payable by him to such non-resident person a sum equal to his estimated liability under this sub-section, and in the event of any disagreement between the non-resident person and such agent or person as to the amount to be so retained, such agent or person may secure from the Income-tax Officer a certificate stating the amount to be so retained pending final settlement of the liability, and the certificate so obtained shall be his warrant for retaining that amount ........ " " 43. Any person employed by or on behalf of a person residing out of the taxable territor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent case were issued on November 2/3, 1961, and therefore subsequent to the said appointment. It was, therefore, contended that the advance payment of tax was properly demanded from the respondent and the respondent could not challenge the notices issued to it. In our opinion, there is no warrant or justification for the argument advanced on behalf of the appellant. The liability imposed upon a person by his appointment as a statutory agent under section 43 of the Act is only in respect of the liability for the assessment year for which the appointment is made. The appointment of the respondent for the assessment year 1961-62 was in respect of the liability of the non-resident firms for the income of the previous year for the said assessment year 1961-62. Having regard to the scheme of the Act, the assessment for each year is self-contained and the vicarious liability imposed by an appointment under section 43 of the Act only extends to the liability for the assessment of the year for which the appointment is made and cannot extend to the liability for any other assessment. Nor can the expression " for all purposes " used in section 43 of the Act extend the liability to any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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