V. K. SINGHAL, J. - (1.) : The Tribunal has referred the following question of law arising out of its order dt. 25th Sept., 1982, in respect of the asst. yrs. 1976-77 and 1977-78 under s. 256(1) of the IT Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled for credit for the entire amount of tax deducted at source in Iran under s. 91(1) of the IT Act, 1961, and not in proportion to the income included in the total income of the assessee after considering the provisions of s. 80RRA of the IT Act ?"
(2.) THE arguments of both learned counsel have been heard. THE question of law referred to this Court is covered by the decision in the case of CIT vs. Dr. R. N. Jhanji (1988) 73 CTR (Raj) 152 : (1990) 185 ITR 586, wherein the decision of K. V. Al. M. Ramanathan Chettiar vs. CIT (1973) CTR (SC) 581 : (1973) 88 ITR 169 (SC), was taken into consideration in which the provisions of s. 49D of the Indian IT Act, 1922, corresponding to s. 91(1) of the IT Act, 1961, were interpreted and it was held that prior to the amendment, the benefit was to only one-half of the remission of tax whereas after the amendment the benefit given was of the entire amount of tax paid on the foreign income which was taxed in India. On the basis of this, the Court came to the conclusion that the assessee is entitled to double taxation relief under s. 91(1) only of the remission of tax paid on 50 per cent. of the total foreign income. In CIT vs. Dr. R. S. Bhatt (1990) 185 ITR 592 (Raj), the judgment of this Court in CIT vs. Dr. R. N. Jhanji (supra) was followed. The question being covered by the two decisions referred to above, we are of the view that the assessee was not entitled under s. 91(1) to credit for the entire amount of tax deducted at source in the foreign country. The decision given by the Tribunal is not in accordance with law. Consequently, it is held that the Tribunal was not justified in holding that the assessee was entitled to credit for the entire amount of tax deducted at source in Iran under s. 91(1) of the IT Act, 1961, and not in proportion to the income included in the total income of the assessee after considering the provisions of s. 80RRA of the IT Act, 1961. Accordingly, the reference is answered in favour of the Revenue and against the assessee.;