TMI Bloggranting stay of recovery of tax under sub-section (7) to assessees having income in Pakistan which cannot be brought into India stands withdrawnX X X X Extracts X X X X X X X X Extracts X X X X ..... icable to the total income which includes income arising in Pakistan. Thus, if the Indian income is Rs. 10,000 and the Pakistan income is Rs. 1,00,000, the assessee is required to pay several times more tax than what he would have been required to pay had there been no income at all in Pakistan. The tax demanded by the Income-tax Officer is, thus, disproportionate to the assessees ability to pay having regard to his income in India. Under the circumstances, the Board have decided that assessees having income in Pakistan which cannot be brought into India, should be asked to pay tax only on the Indian income by treating it as the total income for the purposes of the Income-tax Act. The balance of the tax should be stayed by the Income-tax Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax should be recovered from the assessee. We are constrained to say that this direction by the Central Board of Direct Taxes is a direction diametrically opposed to the statutory provision, a direction which we are unable to support on the basis of any provision under the Act or Rules and we fail to understand how the Board issued such a circular. Even so, we are not called upon to quash that circular and we cannot quash that circular because that circular in no manner can be said to have caused any grievance to the petitioner excepting perhaps the disappointment that what the assessees, if they had income in Pakistan, would have got, he did not get. Such a disappointment we cannot treat as grievance for the purpose of article 226 of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired to pay had there been no income at all in Pakistan. The tax demanded by the Income-tax Officer is, thus, disproportionate to the assessees ability to pay having regard to his income in India. Under the circumstances, the Board have decided that assessees having income in Pakistan which cannot be brought into India, should be asked to pay tax only on the Indian income by treating it as the total income for the purposes of the Income-tax Act.The balance of the tax should be stayed by the Income-tax Officer under section 220(7). 2. In some cases, it has been found that the tax on the Pakistan income was kept in abeyance for a period of only one year and thereafter the recovery proceedings were started even though the Pakistan income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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