9911796707
TMI Blog1967 (1) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... e two petitions to quash two separate orders, one of the Commissioner of Income-tax and the other of the Income-tax Officer, relating respectively to the assessment years 1959-60 and 1960-61, turn on the construction of article III of the Agreement for Relief from or Avoidance of Double Taxation between India and Ceylon contained in Notification No. S.R.O. 456 dated February 6, 1957. The petitioner has been assessed as an individual resident and ordinarily resident in India on his only source of income from a grocery business carried on under the name and style of O. A. Paramasivam Pillai and Sons at 128, 4th Cross Street, Colombo. The income for the first year was determined in both the countries to be Rs. 39,473 and for the next year Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ountry shall make assessment in the ordinary way under its own laws; and where either country under the operation of its laws charges any income from the sources or categories of transactions specified in column I of the Schedule to this Agreement (hereinafter referred to as the Schedule) in excess of the amount calculated according to the percentages specified in columns II and III thereof, that country shall allow an abatement equal to the lower of the amounts of tax attributable to such excess in either country." The first part of the article contemplates liberty to each country to make assessment in the ordinary way under its own laws. There is a Schedule attached to article III, the first column of which relates to the source of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tutory deductions are made. That this is the intention will appear from two considerations. One is, as we mentioned, under the first part of the article, that each country will make assessment in the ordinary way under its own laws. That means the assessment is made by applying the provisions of the relevant Act, not merely applying the charging section. It would follow, therefore, that tax attributable to the excess in either country in the context of column III in the Schedule will be tax relevant to the income and determined to be payable. The second consideration is the very object of the agreement which is to give relief from double burden. There can be no burden on the petitioner in excess of what he has been made to bear in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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