Sankar Prasad Mitra, J. - (1.) In this Reference under Section 60 (1) of the Indian Income-tax Act, 1922, the assessment year is 1949-50. The corresponding accounting year is the calendar year ending 31-12-1948. The assessee is an Indian Company which manufactures aluminium-ware and utensils. The assessee during the relevant accounting year had a shop at Rangoon in Burma for selling some of its manufactured products. The goods that were sold in Burma were all manufactured in India but were sent to Burma for sale. The invoice prices of these goods corresponded with their prices in India and included the manufacturing profits in India and also part of the merchanting profits. The differences between the invoice price and the sale price in Burma were shown as profit accruing or arising in Burma.
(2.) In the assessee's Indian assessment, the Income-tax Officer accepted the assessee's method of accounting. He computed the sum of Rs. 9,688/- as the assessee's loss in Burma for the assessment year 1949-50. But the appropriate authorities in Burma, in the assessee's Burma, assessment, for the assessment year 1949-50, assessed the assessee's income in Burma at Rs. 91,548/. The Burmese authorities charged tax on the sum of Rs. 91,548/- as no business profits tax was payable in Burma for this year.
(3.) The assessee then applied to its Income-tax Officer in India under Section 49-D of the Indian Income-tax Act, 1922. The assessee claimed relief in respect of double taxation on the amount of Rs. 91,548/- for the assessment year 1959-50.;