Double taxation relief must follow the income taxed in both India and the United Kingdom, not a reduced figure.

The double taxation relief under the Income-tax (Double Taxation Relief) (United Kingdom) Rules, 1948, was to be computed on the part of income that had been taxed both in India and the United Kingdom. The phrase "any part of his income" was given its plain meaning, so relief was not reduced merely because part of the same income had also received abatement on account of taxation in Pakistan. The relevant Indian income of Rs. 18,06,813 had been subjected to tax in both India and the United Kingdom, and relief had to be calculated on that amount.

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Issues: Whether the double taxation relief under the Income-tax (Double Taxation Relief) (United Kingdom) Rules, 1948, was to be worked out on Rs. 15,93,557 or on Rs. 18,06,813.

Analysis: The relevant rule granted relief where the same part of income had suffered tax both in India and in the United Kingdom. The expression "any part of his income" was construed according to its plain language. Since the Indian income of Rs. 18,06,813 had been assessed to tax in both jurisdictions, the fact that a portion of that income had also received abatement on account of taxation in Pakistan did not defeat relief under the rule. The relief had, therefore, to be calculated on the income that was doubly taxed in India and the United Kingdom.

Conclusion: The relief was to be worked out on Rs. 18,06,813 and the answer was in favour of the assessee.

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