TMI Blog1988 (11) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... he collateral evidence in the shape of copies of assessment orders, notice of demand, etc., and in the absence of the certificate of assessment from the Pakistan authorities which the assessee is unable to produce ?" The assessee is a public limited company which owns factories that manufacture cement. Two of these factories were situated within Pakistan. They were run till March, 1966, when they were closed down and sold off. The income, according to the assessee, from the two factories in Pakistan was included in the assessee's assessments both in India and in Pakistan. The Income-tax Officer in India assessed the total income of the assessee for the year in question at Rs. 5,09,25,526 upon which the gross demand of tax worked out to Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istan and the failure of the tax authorities in Pakistan: It tendered, however, the copy of an affidavit filed by the Financial Controller before the Commissioner of Income-tax setting out all the facts relevant to its assessment to income-tax in Pakistan for the concerned assessment year. The Tribunal held that, in view of the fact that it was not possible for the assessee to produce the certificate of assessment from the Pakistani tax authorities, it was fair and proper that the Income-tax Officer should satisfy himself in regard to the assessee's assessment in Pakistan with reference to other evidence, such as copies of the assessment order, notice of demand, etc. Such collateral evidence, the Tribunal said, should, in the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Pakistani tax authorities was imperative and no refund could be given to the assessee without it. The agreement is between two States and is intended to avoid double taxation. Sub-clause (b) of article VI relates to the obligation of the State making the demand, without allowing the abatement provided for by the agreement, to hold in abeyance for a period of at least one year, the collection of the portion of the demand equal to the estimated abatement. Where the assessee produced a certificate of assessment from the other State within such period of time, the uncollected portion of the demand is required to be adjusted against the abatement provided for by the agreement. If such certificate is not produced, the outstanding demand may b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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