High Court Madras High Court

Cit vs K. Muthu on 10 December, 2001

Madras High Court
Cit vs K. Muthu on 10 December, 2001
Equivalent citations: 2003 130 TAXMAN 66 Mad
Author: A Rajan


ORDER

A.K. Rajan, J.

The question that is referred is,

“Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in holding that the income from Malaysia cannot be subjected to tax in accordance with the agreement for avoidance of double taxation of income and prevention of fiscal evasion of tax, entered into between Government of India and the Government of Malaysia?”

2. In a number of cases this court has held this issue against the revenue and in favour of the assessee. One such instance is the case reported in CIT v. VR.S.R.M. Firm (1994) 208 ITR 400 wherein this court has held that the income derived from Malaysia cannot be clubbed for the purpose of taxation in India. Hence, this question is answered against the revenue and in favour of the assessee.