INCOME TAX OFFICER v. OM. SP L. SP. LAKSHMANAN CHETTIAR - 1984-LL-0728-7

Citation	1984-LL-0728-7
Appellant Name	INCOME TAX OFFICER
Respondent Name	OM. SP L. SP. LAKSHMANAN CHETTIAR
Court	ITAT
Relevant Act	Income-tax
Date of Order	28/07/1984
Assessment Year	1980-81
Judgment	View Judgment
Keyword Tags	agreement for avoidance of double taxation • special bench • share income
Bot Summary:	1980-81 raises the question whether the income derived by the assessee from sources of malaysia cannot b e included in the total income of the assessee computed under the IT Act, 1961. The ITO included the Malaysian income being the share income from the firm M/s OM.SP.L.SP. Firm, Tapah in the sum of Rs. 40,779 subject to the grant of DIT relief on production of necessary documents. Before us it is urged on behalf of the Department that the Malaysian income has to be included in the total income of the assessee by virtue of the provisions in Art. It is submitted that in view of this also the Malaysian income to be included in the total income. The observations contained in the decision of the Madras High Court in A. A. L. Ramasamy's case have also been considered by the Tribunal, B-Bench, Madras by its order dt. It has been further pointed out in this order that in the order of the Special Bench the terms of the agreement have been examined and the conclusion arrived at namely, that the Malaysian income cannot be included in the assessment. We would follow these orders of the Tribunal and approve the order of the AAC. The appeal is dismissed.

T. R. THIRUVENGADAM, A. M. This appeal by Revenue for asst. yr. 1980-81 raises question whether income derived by assessee from sources of malaysia cannot b e included in total income of assessee computed under IT Act, 1961. ITO included Malaysian income being share income from firm M/s OM.SP.L.SP. Firm, Tapah in sum of Rs. 40,779 subject to grant of DIT relief on production of necessary documents. AAC followed Special Bench order of Tribunal d.t 27th Dec. 1982 in case of P. V. AL. Kulandayan Chettiar vs. ITO (1983) 3 ITD 426 (Mad) (SB) and deleted Malaysian income so included by ITO in assessment. Before us it is urged on behalf of Department that Malaysian income has to be included in total income of assessee by virtue of provisions in Art. 22.1 of Agreement for Avoidance of Double Taxation entered into between Government of India and Malaysia. Attention is also invited to observations of Madras High Court in CIT, Madurai vs. A. A. L. Ramasamy (TCP No. 169/1982 dt. 14th Feb., 1983) (quoted in ground No. 5). It is submitted that in view of this also Malaysian income to be included in total income. This question has been considered by Tribunal in Special Bench decision (supra). observations contained in decision of Madras High Court in A. A. L. Ramasamy's case (supra) have also been considered by Tribunal, B-Bench, Madras by its order dt. 6th Oct. 1983 in ITA No. 1084/Mds/83 in case of ITO vs. O.M.SP.L.M.M. Meyya Chettiar, Devasottai. It has been pointed out that in course of this judgment, their Lordships have referred to arguments of Revenue and have held that there was not justification for several contentions raised and that authorities below had not referred to terms of agreement and had given decision without referring to same. It has been further pointed out in this order that in order of Special Bench terms of agreement have been examined and conclusion arrived at namely, that Malaysian income cannot be included in assessment. We would follow these orders of Tribunal and approve order of AAC. appeal is dismissed. *** INCOME TAX OFFICER v. OM. SP L. SP. LAKSHMANAN CHETTIAR

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