COMMISSIONER OF INCOME TAX Vs. M A MOIS
LAWS(APH)-1992-8-26
HIGH COURT OF ANDHRA PRADESH
Decided on August 27,1992

COMMISSIONER OF INCOME-TAX Appellant
VERSUS
M.A. MOIS Respondents

JUDGEMENT

Syed Shah Mohammad Quadri, J. - (1.)At the instance of the Revenue, the following question of law, is referred to this court for opinion :
"Whether on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that the assessee is entitled to full relief under section 91 of the Income-tax Act, 1961, of the entire amount of tax paid to the Government of Iran though a deduction of 50 per cent. of gross total income allowed under section 80RRA while computing the total income?"

(2.)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 31/03/1978. 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 in India. The Income-tax Officer did not agree with the claim of the assessee but, however, he granted relief by way of deducting 50 per cent. of the tax paid by the assessee in Iran in the order of assessment dated 7/07/1981. Dissatisfied by the order of assessment passed by the income-tax Officer, the assessee filed an appeal before the Appellate Assistant Commissioner. The appeal late authority granted the relief as prayed for by the assessee following the decision of the Supreme Court in K. V. AL. M. Ramanathan Chettiar v. CIT [1973] ITR 169. Aggrieved by the same, the Revenue went in appeal before the Income-tax Appellate Tribunal. The Tribunal while upholding the order of the Appellate Assistant Commissioner dismissed the appeal of the Revenue.
(3.)At the request of the Revenue, the above question of law referred for our opinion.
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