TMI Blog1961 (4) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... 88,635. The income as computed for purposes of assessment in India for the assessment year 1952-53 was ₹ 88,966. On this amount after allowing for the abatement for non-remittance and deducting losses in the business at the headquarters in India and adding the property income and income from other sources in India, the total taxable income was computed to be ₹ 72,742. When the question of double income-tax relief was raised, the Income-tax Officer granted relief only to the extent of ₹ 63,141. This figure was arrived at taking into consideration the Malayan income subject to tax in India as ₹ 84,466 less the business loss at headquarters in India. In the appeal to the Tribunal, however, the Tribunal took the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st his contention, he relies upon certain observations made by the learned judges, which according to him support the view, that it is not the computation under section 10 of the Indian Income-tax Act that is relevant for the purpose of determining what is the income that has been subjected to double taxation but that the source of the income is the essential point for consideration. While we may concede that some observations to this effect are found in the speeches of the several learned Lords the result of this decision has, however, been that it is only that amount of income, the statutory income as it is stated, which has actually suffered tax that has to be taken into consideration for the purpose of determining whether that amount ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Inland Revenue [1934] 18 Tax Cas. 509 was further explained in National Mortgage Agency Company of New Zealand Ltd. v. Commissioner of Inland Revenue [1938] 22 Tax Cas. 223. Finlay J. observed in connection with the observations of Lord Blanesburgh: I think that Lord Blanesburgh undoubtedly there shows that he considers some further analysis necessary, that one has got, so to speak, to split up what he calls the 'compartments' into portions and see which of those portions have in fact borne double tax. Dealing also with Lord Wright's speech in Assam Railways and Trading Co. Ltd. v. Commissioners of Inland Revenue [1934] 18 Tax Cas. 509, he emphasised the observations of that learned Lord: In other words, I t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the nature of the amount as specified above is established, then he becomes entitled to the deduction from the Indian income-tax payable by him of a sum calculated on such double taxed income at the Indian rate of tax or the rate of tax of the said country, whichever is lower. It seems to us, on a plain reading of the section, that the quantum of the income on which income-tax has actually been charged in the two countries is what has to be determined. The fact that before the imposition of the charge any part of the income is exempt from tax or excluded as an allowance cannot be taken to mean that the tax is charged on the whole of the amount including that part of it which had been either exempted or allowed. The expression such doubly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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