HON’BLE SUPREME COURT · SOURCE-REVIEWED NOTE
Commissioner of Income-tax v. Patiala Cement Co. Ltd.
Civil Appeal 118 of 1955
[1957] SCR 1161 ·
Patiala Income-tax Act 2001, sections 18(3A), 18(7) · Finance Act 1950, section 13 · Indian Income-tax Act 1922, section 2(14A)
Sources & disclosures includedDownload original judgment / order
3-judge bench · N. H. Bhagwati · S. K. Das · J. L. Kapur
Assessment years: 1948–49, 1949–50
01 · Facts of the case
The company failed to deduct tax from non-resident managing-agent remuneration and audit fees. Patiala-law demands were challenged in appeal; the High Court treated assessment year 1949–50 as governed by the Indian Act.
Source: Primary report: SCR 1162–1163
02 · Discussion by the Hon’ble Court
The extension operated for assessment year 1950–51 and later, corresponding to accounting year 1949–50. The High Court confused accounting and assessment years. Patiala law remained applicable to both earlier assessments and did not provide the asserted appeal.
Source: Primary report: SCR 1163–1166
03 · Judicial decision
Revenue appeal allowed; first two reference questions answered under Patiala law with no appeals, and third negatively; no costs in this Court because the company did not appear.
Source: Primary report: SCR 1166
04 · Outcome / in whose favour
Revenue succeeded on appellate competence; no general adjudication of the substantive deduction liability was made.
Source: Primary report: SCR 1163, 1166
05 · AKHB REVIEW POINT
Map transitional provisions to the assessment year and previous year separately. This concerns specific historical integration legislation and cannot be read as denying modern appeal rights for tax-deduction defaults.
Source: Primary report: SCR 1164–1166
Source & verification
Download original judgment / order · Open cited source rendition
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Statutory scope
Historical legislation expressly identified in this note. This is not a decision under the Income-tax Act, 1961 or the Income-tax Act, 2025. Verify enacted wording, commencement, transition and subsequent judicial treatment independently before modern reliance.
Later treatment
Source checked 2026-10-23. Subsequent treatment and present-law applicability have not been comprehensively checked.
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AI disclosure & professional disclaimer
This AKHB research note uses AI assistance and a preserved full-primary review, with refreshed exact original-byte verification. Independent human review is not represented.
General legal and tax research only; not legal or tax advice. Verify the complete judgment, applicable statutory version and subsequent treatment before reliance. AKHB REVIEW POINT is editorial analysis, not the Court’s holding.