TMI Blog1992 (8) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... lowed under section 80RRA while computing the total income?" The assessee is a medical practitioner working as Deputy Civil Surgeon, Gandhi Hospital, Secunderabad. During the relevant previous year, he went to Iran on employment and earned income by way of salary. The relevant assessment year is 1978-79 for which the previous year ended on March 31, 1978. During the said period of the assessment year, the assessee earned salary of Rs. 1,10,208 in Iran (hereinafter referred to as the "Iranian income"). On that Iranian income, he paid tax of Rs. 11,785 to the Iranian authorities. Before the Income-tax Officer, the assessee claimed that the whole of the tax paid by him to the Iranian Government should be deducted from the tax payable by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f tax paid by him to the Iranian authorities. To appreciate the contention of learned counsel for the assessee it is relevant to have a look at sub-section (1) of section 91 of the Act, which reads as follows : "91. (1) If any person who is resident in India in any previous year proves that, in respect of his income which accrued or arose during that previous year outside India (and which is not deemed to accrue or arise in India), he has paid in any country with which there is no agreement under section 90 for the relief or avoidance of double taxation, income-tax, by deduction or otherwise, under the law in force in that country, he shall be entitled to the deduction from the Indian income-tax payable by him of a sum calculated on such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from out of income-tax payable by him in India. Unilateral relief is granted to a person resident in India in respect of his income which accrued or arose outside India in countries with which no agreement for double taxation exists under section 90 of the Act to the extent his foreign income suffers double taxation in India. The relief granted by section 91 of the Act is different from and independent of relief by way of the reduction of income by operation of section 80RRA of the Act. For granting relief under section 91 of the Act, the test is what is the income of the assessee which is being doubly taxed. Relief is available only in respect of such income which is doubly taxed by allowing deduction of tax on that income at the Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x, if both the rates are equal. A Division Bench of this court in CIT v. C. S. Murthy [1988] 169 ITR 686 understood the judgment of the Supreme Court in Ramanathan Chettiar's case [1973] 88 ITR 169 in the same way as we did. That was also a case of an assessee resident in India who was having foreign income in respect of which double taxation relief was claimed. The Division Bench held that by merely including the foreign income in the total income it could not be said that the whole foreign income was subjected to tax in India. It laid down the criteria that not only the foreign income must be included in the total income in the assessment made under the Income-tax Act in India, but it should also be subjected to tax in India. For claimi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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