TMI Blog1970 (8) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... t years 1960-61 and 1961-62 ? " The facts giving rise to this question may briefly be recapitulated. The assessment relates to the years 1960-61 and 1961-62. The assessee is Smt. Sharda Ajmani, wife of Shri Ajmani, who in the relevant previous years was working as First Secretary to the Indian Embassy at Baghdad and during those previous years, she was staying with her husband at Baghdad. Smt. Sharda Ajmani was a partner in the registered firm of M/s. County Weavers, Amritsar, having a 12 as. share in the rupee. Besides that, she had some interest income. It is an admitted fact that the situs of the source of income was in the taxable territories and the income accrued and arose in the taxable territories. The contention of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , but it is a condition. It follows, therefore, that such a member is liable to all the liabilities of such a condition, viz., he is subject to taxation in the parent country as if he were resident. If, for instance, it was advantageous to him to be taxed as a non-resident then he could not claim that he should be taxed as a non-resident. (d) It is clear that the expression ' taxable territories ' has an extended meaning in the context of diplomatic personnel. It must be deemed that such a member is deemed to reside within the taxable territories during the period of his office. (e) As such, the Government of India has a right to levy taxes on his income as if he were a resident in the taxable territories. " and on the basis of the af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... untry also is in the comity of Nations, and there is no reason why we should not as much as other countries give effect to well-settled principles of international law. But if the language of the section is clear and is capable of only one construction in the context in which that language is used, then in our opinion it would be an unjustifiable attempt on the part of the court to engraft upon the statutory provision a principle of international law which the legislature itself did not think it proper to do. " Thus it is clear that resort can be made to the principles of international law only if there is no statutory provision in that respect. As earlier observed, the Tribunal has proceeded on entirely wrong premises. Averting to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resident in the taxable territories in any year, if- (i) it is an Indian company ; or (ii) during that year the control and management of its affairs is situated wholly in the taxable territories. " The definition of the " taxable territories " is given in section 2(14A), and the relevant portion with which we are concerned is in the following terms : " (14A) ' taxable territories ' means- ..... (f) as respects any period after the 12th day of April, 1954, the whole of the territory of India : Provided that the taxable territories shall be deemed to include-- (a) the merged territories- (i) as respects any period after the 31st day of March, 1949, for any of the purposes of this Act ; and (ii) as respects any period includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. This conclusion of ours is further supported by the provisions of Explanation 2A to section 4(1) and sub-section (1A) to section 17, which read as under : " Explanation 2A.-Income which would be chargeable under the head 'Salaries' if payable in the taxable territories but which is paid without the taxable territories by the Government to a citizen of India for rendering service without the taxable territories shall be deemed to accrue or arise in the taxable territories. " " 17. (1A) Notwithstanding anything contained in sub-section (1), where a citizen of India, not resident in the taxable territories, is in receipt of salary from the Government for rendering service without the taxable territories, the tax, including super-tax, pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
