1972 (3) TMI 7 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee was entitled to double tax relief of Rs. 19, 654 under the Agreement for Relief from or Avoidance of Double Taxation between India and Ceylon - On a prima facie reading of the text of this article it is clear that the country is obliged to allow an abatement equal to the lower of the amounts of tax attributable to such excess in either country therefore question is answered in affirmative and against revenue

Summary

The High Court of Madras ruled in favor of the assessee, allowing double tax relief under the India-Ceylon Agreement for the assessment year 1955-56. The court held that the relief should be based on the lower of the tax amounts in each country, not the tax rates. The decision was consistent with a previous case and the reference was answered in the affirmative.