COMMISSIONER OF INCOME TAX Vs. RAJAMANI RAMAN

JUDGEMENT

(1.) THE question referred for our consideration is :

(2.) THE question is referred at the instance of the Revenue. THE Tribunal in its order relying on articles 18(3) and 18(5) of the Agreement for Avoidance of Double Taxation of Income entered into between the Government of India and the Government of Malaysia has held that the pension received was not taxable in India, since it was liable for tax in Malaysia, which was the Contracting State. THEre will be no question of its inviting taxation in India, which would amount to double taxation. THE Tribunal has pointed out that the University of Malaysia is a statutory authority and as such would fall within the term "Government" and, therefore, the pension paid by the University of Malaysia as in the present case would have to be construed for the purpose of the Agreement as a pension received from the Government, which is taxable in terms of article 18(3) in Malaysia by the Government of Malaysia. We do not find anything wrong in the order and it is absolutely correct and we confirm the same. THE question is therefore answered in favour of the assessee and against the Revenue. No costs.