Double income-tax relief is limited to income actually taxed in both jurisdictions, not the full assessed amount.

Relief for double income-tax under section 49D is confined to the income that has actually borne tax in both jurisdictions. An amount computed for assessment purposes does not qualify as doubly taxed income if part of it was excluded by allowance or set-off before charge. The proper inquiry is the quantum that in fact suffered tax under both Malaya and India, not the entire amount attributed to the source. On that basis, only the smaller sum constituted doubly taxed income, and relief was available only to that extent.

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Issues: Whether the amount eligible for double income-tax relief under section 49D was the larger sum computed by the assessee or only the portion of income that had in fact borne tax in both Malaya and India.

Analysis: Relief under section 49D depends on identifying the income that has actually been charged to tax in both jurisdictions. The amount merely computed for assessment purposes does not become doubly taxed income if part of it has been excluded by allowance or set-off before charge. The relevant inquiry is the quantum of income that has in fact suffered tax under both laws, and not the whole amount attributed to the source of income.

Conclusion: Only Rs. 63,141 constituted doubly taxed income and the assessee was entitled to relief only to that extent. The larger figure of Rs. 72,742 was not the proper basis for relief.

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