1967 (1) TMI 17 - HC - Income Tax

Foreign income - there is no prohibition or restriction in force throughout the period subsequent to the assessment years - there is no proof that the assessee has utilised his share of income for the two years or could have utilised the same for any expenditure actually incurred in Ceylon - there is no constructive remittance into the taxable territories of any part of his foreign income - explanation to section 45 is therefore not attracted

Summary

The petitioner, a non-resident, was assessed for income tax on foreign income from a partnership firm in Ceylon. Coercive proceedings were initiated for tax arrears. The petitioner relied on a proviso to section 45, which was upheld by the court. The court directed the Income-tax Officer to treat the petitioner as not in default as long as the prohibition in Ceylon against bringing money into taxable territories continues. Petition allowed, no costs.