COMMISSIONER OF INCOME-TAX, DELHI AND RAJASTHAN vs M/S. BHARAT CARBON AND RIBBON MANUFACTURING CO.

The Supreme Court held that under Section 18(3) of the Indian Independence Act, the advance tax paid by the assessee in Lahore could be adjusted by both the Indian and Pakistan governments. The Court ruled that if the Pakistan government granted credit for the advance tax, the Indian authorities were not obligated to provide the same credit. The decision of the High Court was upheld, affirming the Appellate Tribunal's ruling in favor of the assessee regarding the adjustment of advance tax for the assessment year 1947-48.