THE PREMIER AUTOMOBILES LTD. versus S. N. SHRIVASTAVA & ANR.

Citation: [1969] 2 S.C.R. 353 · Decided: 10-10-1968 · Supreme Court of India · Bench: J.C. SHAH · Disposal: Dismissed

Judgment (excerpt)

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THE PREMIER AUTOMOBILES LTD. 
v. 
S. N. SHRIV ASTA VA & ANR. 
October 10, 1968 
(J. C. SHAH, V. RAMASWAMI, G. K. MITTER, K. S. HEGDE AND 
A. N. GROVER, JJ.J 
Indian Income-tax, 1961, ss. 160, 163, 209, 210, 212-Agent of non· 
r,esident whether liable to pay 
advance-tax payable by 
non-resident-
Prqvisions creating such liability whether violative of Constitution 
of 
India, Art. 14. 
The Income-tax Officer, Companies Circle, Bombay treating the peti-
tioner as an agent of a non-resident issued a notice of de.mand under s. 156 
read with s. 210 of the Indian Income-tax Act, 1961. 
By this notice 
the petiti_oner was called upon to pay advance tax as agent of the foreign 
principal during the financial year 1964-65. The petitioner filed a peti-
tion under Art. 32 of the Constitution challenging the demand. 
The 
contentions in support of the petition were : (i) that under ss. 209 and 
210 of the1 India11 !ncomNax Act, 1961 no order fqr payment of advance 
tax can be made against an agent of a non-resident; (ii) that a provi-
sion which authorises collection of advance-tax from an agent of a 
non-resident infringes the equality clause of the Constitution. 
In sup-
port of the first contention it was urged that since under s. 209(1) the 
amount of advance-tax payable by an assessee in the financial year is 
to be computed on his total income of the latest previous year in respect 
of which he• has been assessed by way of regular 'assessment, an agent 
cannot be directed to pay advance-tax the liability whereof 
depends 
upon the determination of total income of the principal. 
HELD : (i) Sections 207 and 208 which impose 
liability to pay 
advance-tax in a financial year. s. 210 which authorises the Income-tax 
Officer to make a demand for payment of advance-tax from a person 
who is previously assessed, and s. 212(-3) \Vhich imposes the duty to 
make an estimate of the total income likely to be received or to accrue 
or arise, and to pay advance-tax jf the total estimated income 
exceeds 
the maximum amount not chargeable to tax in his case by Rs. 2,500/-
apply to e:very person whether he is assessed in respect of his own in-
come or as a representative assessee, and it is 
not possible to imply 
in the application of these provisions ·an unexpressed limitation on the 
express words of the statute in favour of an agent of a non-resident 
principal. [358 C-D] 
It is expressly enacted by s. 161 that as regards income in respect 
of which. a person is a. representative assessee:, he sh·aU be subject to the 
sam~ duties, responsibillties and liabilities as if the income· were income 
:ece1.ved by or accruing to or in favour of him beneficially. It is clearly 
1mphc1t therein that a representative assessee is not exempt from li'abilitv 
to pay aclvance-tax. [357 CJ 
-
. Of the liability to pay advance-tax it is not predicated that the pre-
vious ye~ should have come to an end before the liability can arise. 
The previous year of an 
assessee. may in some cases end after 
the 
com:nencement ~mt befo:e the end of a financial year in which advance 
tax 1s. payable : 1t may ~n .~ther cases 
commence. and end with 
the 
financial year. 
But the hab1hty to pay advance tax is not in any manner 
354 
SUPREME COURT REPORTS 
(1969] 2 S.C.R. 
affected because the previous year ends before or with the. firrancial year. 
There is nothing in the Act under which the liability to pay advance 
tax of a representative assessee-
depends ·upon 
determination of the 
total for the previous year. [357 C--G] 
Accordingly, it could not be held that the petitioner was not liable 
to pay advance tax on behalf of his non-resident principal. [358 E---F] 
(ii) The plea that the provisions imposing liability to pay advance• 
tax upon an ·agent of a non-resident infringe the equality clause of the 
Constitution 
could not be accepted. The only ground urged, that an 
assessee. may escape liability to pay advance tax when his previous year 
coincides with the financial year, was without substance. [359 B--C] 
ORIGINAL JURISDICTION : Writ Petition No. ft! of 1965. 
Petition under Art. 32 of the Constitution of India for en-
forcement of the fundamental rights. 
M. C. Chagla, F. N. Kaka, 0. P. Malhotra and J. B. Dada-
c/utnji, for the petitioner. 
B. Sen, T. A. Ramachandran and R. N. Sachthey, for the res-
pondents. 
· 
The Judgment of the Court was delivered by 
Shah, J_ 
On February 25, 1965, the Income-tax Officer, 
Companies 

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