1981 (6) TMI 97

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..... capital gains arising from sale of property in Malaysia of Rs. 18,113 is assessable in India. 2. The assessee owns certain rubber estates in Malaysia. The income from these rubber estates came to Rs. 88,424 during the asst. yr. 1977-78. During the year the assessee sold a property, the short-term capital of which came to Rs. 18,113. The ITO on the ground that both the incomes are assessable in .....

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..... terprise of one of the contracting States shall be taxable only in that contracting State unless the enterprise carries on business in the other contracting State through a permanent establishment situated therein. As per this provision the assessee is liable to tax in respect of the income of the rubber estates only if the assessee has a permanent establishment for the business in India. Since th .....

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..... tal gains springs from the property and therefore Art. 6 clearly excludes taxation of such income except in the State in which the property is situated. Since in this case the property is situated in Malaysia, capital gains cannot be taxed in India. We agree with the CIT (A) on this point. Hence this point is also found against the Department. 5. In the result, the departmental appeal is dismiss .....

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