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TMI Blog1971 (8) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Rs. 3,43,138 received by the assessee was derived from a source or category of transaction mentioned in item 5(g) of the Schedule to the Agreement for the Avoidance of Double Taxation of Income between India and Pakistan ? and (2) If the answer to the above, question be in the negative, then whether the aforesaid sum fell under item 9 of the Schedule of the aforesaid Agreement." The High Court agreeing with the Tribunal's findings answered the first question in the affirmative and, consequently,, declined to answer the second question. Aggrieved by that decision the department has brought this appeal. The respondent-assessee carried on the business of plying river boats before the partition of India. Herein we are concerned with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the avoidance of double taxation of income chargeable in the two dominions in accordance with their respective laws : Now, therefore, the said two Governments do hereby agree as follows : ...... Article IV.--Each Dominion shall make -assessment in the ordinary way under its own laws; and, where either. Dominion 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 percentage specified in columns 2 and 3 thereof, that Dominion shall allow an abatement equal to the lower amount of tax payable on such excess in their Dominion as provided for in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dule to the Agreement cement for Avoidance of Double-Taxation. According to the assessee its ase fell within item 5(g) and not item 9. The Income-tax Officer did not accept that contention. In appeal the Appellate Assistant -Commissioner agreed with the conclusions reached by the Income-tax Officer but the Income-tax Appellate Tribunal differed from the view taken by the Income-tax Officer and the Appellate Assistant Commissioner. It came to the conclusion that the receipt in question fell within item 5(g) of the agreement and therefore it is not liable to be taxed in this country as admittedly the traffic originated in areas which are now part of Pakistan. As mentioned earlier the High Court argued with the view taken by the Tribunal. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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