Legal Case Summary

Case Details
Case ID 10aca78a-56a6-4da2-a23e-9ecb872cb6f9
Body View case body.
Case Number IT REFERENCE No. 138 OF 1967
Decision Date May 11, 1971
Hearing Date
Decision The court ruled in favor of the assessee, Clive Insurance Co. Ltd., allowing relief under section 49D of the Indian Income-tax Act, 1922. The court found that the amount deducted from the dividend income constituted payment of income-tax under the law in force in the U.K. The ruling emphasized that the term 'assessed' in the context of section 49D should be interpreted as 'taxed' or 'suffered tax', which does not necessitate an actual assessment by the U.K. tax authorities. The court determined that the deductions made by the U.K. company from the dividend payments to the assessee were valid and entitled the assessee to relief from double taxation under Indian law.
Summary In the case of Clive Insurance Co. Ltd. v. Commissioner of Income Tax, the Calcutta High Court addressed the applicability of section 49D of the Indian Income-tax Act, 1922, concerning relief from double taxation on dividend income received by an Indian resident from U.K. investments. The court examined whether the deductions made from the dividend income constituted payment of income-tax in the U.K. The judges concluded that the deductions did qualify as payment of income-tax, thereby allowing the assessee to claim relief under the Indian Act. The ruling highlighted significant aspects of international taxation, particularly focusing on the interpretation of tax payment and relief provisions, which are crucial for businesses operating in multiple jurisdictions. The case underscores the importance of understanding tax obligations in both domestic and foreign contexts, especially for entities dealing with cross-border investments and income. This case serves as a precedent in similar disputes involving international tax relief claims and reinforces the need for clarity on how tax laws are applied, especially in cases of double taxation.
Court Calcutta High Court
Entities Involved Commissioner of Income Tax, Clive Insurance Co. Ltd.
Judges Sankar Prasad Mitra, A.N. Sen
Lawyers Mr. Roy
Petitioners Commissioner of Income Tax
Respondents Clive Insurance Co. Ltd.
Citations 1972 SLD 463, (1972) 85 ITR 531
Other Citations Not available
Laws Involved Indian Income-tax Act, 1922
Sections 49D, 66(1), 35