COMMISSIONER OF INCOME-TAX Vs. TATA SONS PRIVATE LTD
LAWS(BOM)-1972-10-21
HIGH COURT OF BOMBAY
Decided on October 19,1972

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
TATA SONS PRIVATE LTD. Respondents

JUDGEMENT

K.K.Desai, J. - (1.) In Reference No. 33 of 1964 and also in Reference No. 35 of 1964 the questions raised relate to the true construction and effect of the provisions in sections 184 and 199 of the United Kingdom Income Tax Act, 1952, in connection with the claim of the assessee concerned for relief under section 49D of the Indian Income-tax Act, 1922.
(2.) In Reference No. 33 of 1964, the claim for relief related to the assessment years 1955-56 and 1957-58, therelevant account years being calendar years 1954 and 1956. In these two years the assessee had received the respective sums of Rs. 59,149 and Rs. 56,766 by way of dividend income, accrued without the taxable territories, i.e., income in the United Kingdom. The claim of the assessee under section 49D (1) was that it was resident in the taxable territories in the year of account. In respect of the above dividend income deduction had been made and the assessee had paid income-tax under the law in force in the United Kingdom. For this reason the assessee was entitled to deduction from the Indian income-tax payable by it in accordance with the scheme of section 49D (1). The Income-tax Tribunal decided the claim in favour of the assessee and granted the relief as claimed. The Income-tax Tribunal construed the above sections of the United Kingdom Income Tax Act to mean that in respect of the dividend income which had accrued to the assessee income-tax was paid by the assessee "by deduction or otherwise" within the meaning of section 49D (1). This finding is challenged in the present Reference No. 33 of 1964 and the two questions referred are as follows : "(i) Whether the assessee-company is entitled to the benefit of the relief as provided under section 49D (1) in respect of dividend income of Rs. 59,149 for the assessment year 1955-56? (ii) Whether the assessee-company is entitled to the benefit of the relief as provided under section 49D (1) in respect of dividend income of Rs. 56,766 for the assessment year 1957-58 ?"
(3.) In the Income-tax Reference No. 35 of 1964, similar contentions were made on behalf of the assessee in respect of the assessment years 1954-55 and 1955-56, the relevant account years being the years ended 30th June, 1953 and 1954. The Income-tax Tribunal made findings in favour of the assessee and the questions raised run as follows : "1. Whether the assessee-company is entitled to the benefit of the relief as provided under section 49D (1) in respect of the dividend income of Rs. 1,20,523 received from the English companies and/or of Rs. 16,894 received from the American companies, for the assessment year 1954-55 ? 2. Whether the assessee-company is entitled to the benefit of the relief as provided under section 49D(1) in respect of the dividend income of Rs. 1,21,636 received from the English companies and/or Rs. 11,536 received from the American companies for the assessment year 1955-56 ?";


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