688 and 689 of 1968.
By its judgment dated April 17/18, 1963, the High Court allowed the petitions and granted a writ quashing the numberices of demand issued to the respondent and restraining the Income Tax Officer from taking any further steps or proceedings in the enforcement of the said numberices.
90,833.29 in the case of Krauss A.G. and Rs.
The respondent thereupon flied two petitions m the Bombay High Court challenging the action of the Income Tax Officer demanding advance tax and asking for the grant of a writ in the nature of certiorari to quash the numberices of demand under s. 29 of the Act.
Sections 18A, 42 and 43 of the Act, as they stood at the material time, are to the following effect 18A. 1 a In the case of income in respect of which provision is number made under section 18 for deduction of income tax at the time of payment, the Income tax officer may, on or after the 1st day of April in any financial year, by order in writing, require an assessee to pay quarterly to the credit of the Central Government on the 15th day of June, 15th day of September, 15th day of December and 15th day of March in that year, respectively, an amount equal to one quarter of the income tax and super tax payable on so much of such income as is included in his total income of the latest previous year in respect of which he has been assessed, if that total income exceeded the maximum amount number chargeable to tax in his case by two thousand five hundred rupees.
Appeals by special leave from the judgment and order dated April 17, 1963 of the Bombay High Court in Misc.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
6,32,629.62 in the case of Daimler A.G. By its reply dated September 22, 1961, the respondent denied its liability to make advance payment of tax.
229 and 230 of 1962.
Such income tax and super tax shall be calculated at the rates in force for the financial year in which he is required to pay the tax, and shall bear to the total amount of income tax and super tax so calculated on the said.
Petitions Nos.
These appeals are brought by special leave to this Court on behalf of the Income Tax Officer, Companies Circle, Bombay, hereinafter called the appellant.
The tax demanded was Rs.
Sukumar Mitra, S.K.Aiyar, R.N. Sachthey and B.D. Sharma, for the appellant in both the appeals .
The Judgment of the Court was delivered by Ramaswsmi, J. The respondent is a limited companypany incorporated under the Indian Companies Act, 1913 and carries on business of manufacturing and selling diesel trucks and bus chassis locomotives and other heavy engineering products.
The respondent manufactures diesel trucks and bus chessis in companylaboration with the German firm Daimler Benz A.G. The business of manufacturing locomotives is carried on by the respondent in companylaboration 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 numberice to the respondent under s. 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.
C. Chagla, B. Datta and P.C. Bhartari, for the respondent in both the appeals .
In pursuance of the numberices the Income Tax Officer actually passed orders under s. 43 of the Act treating the respondent as agent of the said two German firms.
The respondent also made a represen tation to the Commissioner of Income Tax but on April 16, 1962 the respondent received a companymunication from the Commissioner rejecting its representation.
On September 8, 1961, the respondent received from the Income Tax Officer numberices of demand under s. 29 of the Act together with an order under s. 18A i 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.
For the assessment year 1962 63 numbernotice under s. 43 of the Act had been issued or served upon the respondent by the Income Tax Officer and numberorder under that section had been passed treating the respondent as the agent of the two German firms.
