RAMA NAND Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AN important and interesting point of law arises on this reference and the facts giving rise to the same are as under :

(2.) IT cannot be denied that the agent of a non-resident is liable to pay income-tax, and that he shall be deemed to be for all the purposes of the Act, the assessee in respect of income-tax. Such a liability is clearly provided for in sub-section (2) of section 40 read with section 42 and 43 of the Act. Section 18A of the Act provides for advance payment of tax. Sub-section (3) of this section reads as under :

(3.) THE facts of the present case are clearly distinguishable from those of the case decided by their Lordships of the Supreme Court and we are definitely of the opinion that an agent of a non-resident cannot be called upon to pay any penalty under section 28 of the Act for non-compliance with the provisions of sub-section (3) of section 18A. We would therefore answer the question referred to us in the negative. THE Commissioner shall pay the costs of this reference. Counsels fee Rs. 200.