Advance tax credit cannot be claimed twice after partition where Pakistan assessment already absorbed the payment.

Advance tax paid under section 18A was treated as creditable against the regular assessment, but after the Indian Independence Act the pre-existing income-tax law continued in both Dominions with necessary adaptations. That continuation meant the same advance tax could be adjusted only once: where the Pakistan authorities had already given credit against their demand, nothing remained available for a second credit in India. The earlier authority relied on by the assessee was distinguishable because no regular Pakistan assessment had been made there. The claim to double credit therefore failed.

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Issues: Whether advance tax paid in Lahore under section 18A of the Income-tax Act could again be credited against the Indian regular assessment after the Indian Independence Act.

Analysis: The advance tax provision treated sums paid under section 18A as tax to be credited in the regular assessment. After the Indian Independence Act, the pre-existing income-tax law continued in both Dominions with necessary adaptations, with the result that the incidents of advance tax changed. The same advance tax could be adjusted against regular assessments in both India and Pakistan, but once credit had been taken by the Pakistan authorities against their demand, nothing remained available for a second credit in India. The earlier case relied on by the assessee was distinguishable because no regular Pakistan assessment had been made there.

Conclusion: The assessee was not entitled to a further credit in India for the advance tax already adjusted in Pakistan. The answer to the referred questions was in the negative and against the assessee.

Final Conclusion: The High Court's answer was reversed and the assessee's claim to double credit for the same advance tax failed.

Ratio Decidendi: Where advance tax has already been adjusted against a regular assessment in one Dominion after the partition-induced continuation of the income-tax law in both Dominions, the assessee cannot claim the same credit again against the regular assessment in the other Dominion.

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