TMI Blog1969 (4) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer worked out the relief as under : INDIA CEYLON Total income 38,490 46,172 Tax paid 10,094.52 8,280 Ceylon income 38,430 46,112 Proportionate tax on Ceylon income 10,094 X 38,430 8,280 X 46,112 ------------ ------------ 38,490 46,172 =10,060.81 =8,269.11. The assessment, in fact, was completed on July 31, 1959, and relief was granted on the above basis to the extent of Rs. 8,269.11. Later, the Income-tax Officer, on the basis that the relief granted was in excess of the correct relief which ought to have been granted, re-calculated the same and ultimately awarded relief to the assessee in the sum of Rs. 6,891. The basis on which such a reduced relief was granted was worked out on the theory that under article III of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to be rendered by this court. The result is, the following two questions of law, the first at the instance of the Commissioner of Income-tax, Madras, who has regularly applied for such a reference, and the second at the instance of the assessee, who did not make any such application in accordance with law, have been referred to us for our decision : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee was entitled to double tax relief of Rs. 8,269.11 under the Agreement for relief from or Avoidance of Double Taxation between India and Ceylon (S. R. 456 dated 6th February, 1957)? 2. Whether, on the facts and in the circumstances of the case, the initiation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot confer on it tile power to frame a rule conferring a sub-stantive right not contemplated by or conferred by section 66." The above ratio is a complete answer and the preliminary objection has to be upheld. We are not therefore, answering the second question as it need not be answered. On the first question we are of the view that the Appellate Tribunal was right. The answer to this question depends on the interpretation of article III of the Agreement for relief from or Avoidance of Double Taxation in India and Ceylon, which reads as follows: "Each country shall make assessment in the ordinary way under its own laws : and where either country under the operation of its laws charges any income from the sources or categories of trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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