https://www.taxtmi.com/caselaws?id=193275 Section 42(1) of the Income-tax Act, 1922 is explained as a machinery provision for taxing income arising through a business connection with a non-resident and for enabling collection through the agent where direct recovery is difficult. The provision is described as valid because the choice to assess the non-resident or the agent follows the statutory scheme and creates vicarious liability linked to the business connection, without arbitrary discrimination or an unreasonable restriction on business. The notes also state that assessment in the non-resident's name, through resident agents, does not invalidate proceedings, and that purchasing operations carried on by the statutory agent fall within 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 is explained as a machinery provision for taxing income arising through a business connection with a non-resident and for enabling collection through the agent where direct recovery is difficult. The provision is described as valid because the choice to assess the non-resident or the agent follows the statutory scheme and creates vicarious liability linked to the business connection, without arbitrary discrimination or an unreasonable restriction on business. The notes also state that assessment in the non-resident's name, through resident agents, does not invalidate proceedings, and that purchasing operations carried on by the statutory agent fall within section 42(3). Case-Laws Income Tax Fri, 03 May 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193275