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TMI Blog1968 (3) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, one KV. AL. M. Ramanathan Chettiar, who is now dead and succeeded by his legal representatives, was doing money-lending business in Malaya as well as in this country. It appears, he also owned rubber gardens in that foreign territory. The point in the reference turns on the proper application of section 49D of the Income-tax Act to the facts in each of the years. Three questions have been formulated for the first year and two common questions for the next two years. The first question as to the jurisdiction of the Commissioner to revise an order of refund made by the Income-tax Officer on his view of section 49D is not pressed by the assessee and it is, therefore, answered against him. The two other questions in that year are : " (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Rs. 2,22,532 related to foreign business income, the loss in India under a similar head alone could be deducted and the Indian income from other sources could not be taken into account at all. It was on this process of reasoning he arrived at the figure of Rs. 1,53,674 for computing the double tax relief. In our opinion, the conclusion arrived at by the Commissioner of Income-tax is correct. But we are not prepared to go by the mode of the Commissioner to arrive at that result. The crux of double tax relief under section 49D is to be found in the identity of the income from Indian and foreign sources which has suffered tax at both ends and numercial and comparative equivalence of the identical income subjected to Indian as well as foreig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ief be granted in respect of this sum which has suffered but one tax under the provisions of the Indian Income-tax Act. It has been argued that for determining total world income for the purpose of the Indian Income-tax Act, the sum of Rs. 39,142 comes into the computation. That is perfectly true. But it does not follow from it that merely because it comes into the computation; it has also suffered double tax. The view that we have expressed receives support from the ratio of Commissioner of Income-tax v. Arunachalam Chettiar . Our attention has been invited to Commissioner of Income-tax v. New Citizen Bank of India Ltd. But we find that the court there was not concerned with section 49D, but a rule providing for double income-tax relief i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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