https://www.taxtmi.com/caselaws?id=193275 Section 42(1) of the Income-tax Act, 1922 permits non-resident income arising through a business connection to be assessed either in the non-resident's name or through its resident agent. The provision operates as a tax-collection mechanism, with the agent's vicarious liability linked to control over the business connection and safeguards for retention and recovery from the non-resident's assets. This assessment choice is treated as guided by the statutory scheme rather than arbitrary discretion and is not regarded as violating equality or business-freedom protections. Assessment in the non-resident principal's name through the resident agent remains valid, and purchasing operations undertaken by the statutory agent fall within the relevant statutory concept under section 42(3). en-us Fri, 03 May 1957 00:00:00 +0530 Fri, 21 Jul 2017 15:36:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193275 Section 42(1) of the Income-tax Act, 1922 permits non-resident income arising through a business connection to be assessed either in the non-resident's name or through its resident agent. The provision operates as a tax-collection mechanism, with the agent's vicarious liability linked to control over the business connection and safeguards for retention and recovery from the non-resident's assets. This assessment choice is treated as guided by the statutory scheme rather than arbitrary discretion and is not regarded as violating equality or business-freedom protections. Assessment in the non-resident principal's name through the resident agent remains valid, and purchasing operations undertaken by the statutory agent fall within the relevant statutory concept under section 42(3). Case-Laws Income Tax Fri, 03 May 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193275