9911796707
TMI Blog1989 (11) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction in computing the business income liable for taxation ?" The facts as stated by the Tribunal are as under : The assessees are non-resident companies and certain profits earned by them had to be transmitted to the United Kingdom. The calculation of N the profits was initially made on the basis of the exchange rate prevailing at the time of declaration thereof. At the time of remittance of these profits, the exchange rate having varied, the assessees claimed losses of Rs. 3,27,978 and Rs. 3,61,739 consequent thereto. According to the Income-tax Officer the losses did not relate to the assessee's business and were, therefore, not allowable. On appeal, it was argued on behalf of the assessees that the remittances of profits did re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naturally the incomes would have been much higher. In any case the loss or profit would be suffered and gained by the assessee after the ascertainment of the profits in the course of transmission to the U. K. and we are not concerned with what the assessee actually received there. In view of the reasoning given by the authorities below and the aforesaid discussion we are of the opinion that there is no force in these appeals which are accordingly dismissed. The principles stated by the Tribunal find support from a Division Bench decision of this court in the case of Namdang Tea Co. Ltd. v. CIT [1982] 138 ITR 326. There, on similar facts, it was held by a Division Bench of this court that where the business of the assessee was carried on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is received or deemed to be received in India or accrues or arises in India. Therefore, it is the Indian part of the income which will be included in the total income. The assessees may have income from various other sources which will be taken into account when the assessees are to be taxed in England. Section 5(2) of the Act does not take into account all such income. It is the Indian part of the total world income that is taxed in India. What happens to the income after it is earned or the destination of that income or calculation of that income in England in pound sterling cannot possibly have any bearing on the question of income of the assessee in India. We are of the opinion that the Tribunal has taken a correct view of the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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