COMMISSIONER OF INCOME TAX Vs. SACHDEV P N

JUDGEMENT

(1.) ON an application made by the Department under S. 256(1), the following question has been referred to the High Court for its opinion :

(2.) IN CIT vs. Dr. R. N. Jhanji (1988) 73 CTR (Raj) 152 : (1990) 185 ITR 586 (Raj), this Court held that an assessee is not entitled to relief under S. 91(1) of the INCOME TAX ACT, 1961, of the full amount of tax paid on the total foreign income earned in the foreign country and that the assessee could be entitled to the relief under S. 91(1) of the Act only on the amount of tax paid on fifty per cent. of the total foreign income.

(3.) FOR the reasons given above, we answer the question in favour of the Revenue and against the assessee, by holding that the assessee was not entitled to deduct the full amount of tax deducted at source by the Government of Iran on its foreign currency earned in Iran from the tax payable on the said income in India.