9911796707
TMI Blog1967 (1) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessed as an individual resident and ordinarily resident in India on his only source of income from a grocery business carried on under the name and style of O. A. Paramasivam Pillai and Sons at 128, 4th Cross Street, Colombo. The income for the first year was determined in both the countries to be Rs. 39,473 and for the next year Rs. 39,047. The Ceylon authorities who assessed the petitioner under the provisions of the Ceylon Income-tax Ordinance, 1932, certified the income-tax payable for the first year to be Rs. 5,919 and for the second year to be Rs. 5,249. The gross taxes arrived at in Colombo for the two years were respectively Rs. 9,889 and Rs. 9,718. Taxes certified were arrived at after deducting reliefs permissible under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allow an abatement equal to the lower of the amounts of tax attributable to such excess in either country." The first part of the article contemplates liberty to each country to make assessment in the ordinary way under its own laws. There is a Schedule attached to article III, the first column of which relates to the source of the income or the nature of the transaction from which income is derived and columns II and III specify the percentage of income which each country is entitled to charge under the Agreement. It is not disputed that the income in question falls under item 8 of the Schedule, which is a residuary one, as to any income derived from a source or category of transactions not mentioned in any of the other items in the Sched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcess in either country in the context of column III in the Schedule will be tax relevant to the income and determined to be payable. The second consideration is the very object of the agreement which is to give relief from double burden. There can be no burden on the petitioner in excess of what he has been made to bear in respect of identical income in Ceylon. To allow abatement under article III equal to the gross income-tax assessed in Ceylon would mean that the petitioner will be getting not merely relief from double tax but double relief in respect of that part of the gross tax in Ceylon which the petitioner has not been called upon to bear or pay. The petitions are dismissed with costs, one set. Counsel's fee, Rs. 250. Petitions di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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