H.L. SUD, INCOME-TAX OFFICER, BOMBAY vs TATA ENGINEERING & LOCOMOTIVE CO. LTD.BOMBAY

The Supreme Court held that under Section 43 of the Income-tax Act, 1922, a person cannot be treated as an agent for a non-resident firm for an assessment year without a specific notice for that year. The Court clarified that the liability for advance tax under Section 18A cannot be imposed unless there is a fresh appointment of the respondent as a statutory agent for the relevant assessment year. The absence of notice or order for the assessment year 1962-63 invalidated the demand for advance tax, leading to the dismissal of the appeals against the High Court's decision to quash the demand notices.