| Case ID |
10aca78a-56a6-4da2-a23e-9ecb872cb6f9 |
| Body |
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| 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
|