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Alankar Commercial Pvt. Ltd. Vs. Assistant Commissioner of Income-tax and ors. - Court Judgment

LegalCrystal Citation
SubjectCompany
CourtSupreme Court of India
Decided On
Case NumberPetition for Special Leave to Appeal (Civil) No. 17435 of 1999
Judge
Reported in[2000]101CompCas243(SC); [2000]244ITR31(SC); JT1999(10)SC442; (2001)9SCC380
ActsIncome Tax Act, 1961 - Section 148
AppellantAlankar Commercial Pvt. Ltd.
RespondentAssistant Commissioner of Income-tax and ors.
Advocates: P.P. Malhotra, Sr. Adv.,; A.K. Sanghi and; Manish Pitak,
Prior historyFrom the Judgment and Order dated 21-7-1999 in CWP No. 18 of 1995 of the High Court of Sikkim
Excerpt:
- [ b.n. kirpal and; s. rajendra babu, jj.] - income tax — income arising within india — liability to pay tax — scope and extent of — held, petitioner company despite being registered in sikkim is liable to pay the tax in respect of income arising in india — hence issue of notice to it under section. 148 not improper -- learned counsel for the petitioner relies upon the decision of this court in state of sikkim v. surendra prasad sharma1. the question of applicability of the income tax act did not arise in that case, therefore, the said decision has no relevance. the indian income tax act, inter alia, taxes income which accrues or arises in india......the petitioner relies upon the decision of this court in state of sikkim v. surendra prasad sharma1.2. the aforesaid decision in surendra sharma case1 related to the employees employed in a company in sikkim and the question which arose there was whether the indian law applied or not. the question of applicability of the income tax act did not arise in that case, therefore, the said decision has no relevance. the indian income tax act, inter alia, taxes income which accrues or arises in india. it is immaterial whether the petitioner company has its head office in sikkim or may be carrying on business activities there. the impugned notice under section 148 of the income tax act has been issued in relation to the income which is stated to have arisen in india and this can be done even if.....
Judgment:

B.N. Kirpal and; S. Rajendra Babu, JJ.

1. It is contended that Sikkim was not a part of India and at that time the Income Tax Act was not applicable in respect of the assessment year for which notice was served in New Delhi. Learned counsel for the petitioner relies upon the decision of this Court in State of Sikkim v. Surendra Prasad Sharma1.

2. The aforesaid decision in Surendra Sharma case1 related to the employees employed in a company in Sikkim and the question which arose there was whether the Indian law applied or not. The question of applicability of the Income Tax Act did not arise in that case, therefore, the said decision has no relevance. The Indian Income Tax Act, inter alia, taxes income which accrues or arises in India. It is immaterial whether the petitioner Company has its head office in Sikkim or may be carrying on business activities there. The impugned notice under Section 148 of the Income Tax Act has been issued in relation to the income which is stated to have arisen in India and this can be done even if the petitioner has a company registered in Sikkim. The decision of the High Court calls for no interference.

3. The petition for special leave is dismissed.


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