Plain-language tax computation rule: gross Indian super-tax is divided by gross total income for double taxation relief.

Rule 2(b) of the Income-tax (Double Taxation Relief) (United Kingdom) Rules, 1948 separates Indian income-tax and Indian super-tax for computing the Indian rate of tax. Where the rule expressly requires exclusion of exempt income for the income-tax component but contains no similar adjustment for super-tax, the formula must be applied as written. The gross Indian super-tax is therefore divided by the gross total income, without reducing the denominator by Pakistan income for that component. The stated effect is that double taxation relief is computed on the plain language of the rule, with no implied deduction added to the super-tax calculation.

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Issues: Whether, for computing the Indian rate of tax under rule 2(b) of the Income-tax (Double Taxation Relief) (United Kingdom) Rules, 1948, the amount of Indian super-tax is to be divided by the gross total income or by the total income after excluding Pakistan income.

Analysis: Rule 2(b) separately defines the Indian rate of tax by combining two components: Indian income-tax and Indian super-tax. While the first component expressly requires deduction of exempt income from the total income, the latter component contains no corresponding adjustment either to the super-tax figure or to the denominator. The language of the rule is clear and does not permit importing words that are absent. Accordingly, the gross amount of Indian super-tax has to be divided by the gross total income, without deducting Pakistan income from the denominator for that part of the computation.

Conclusion: The Indian rate of super-tax was correctly to be calculated by dividing the gross Indian super-tax by the gross total income, and the assessee was entitled to relief on that basis.

Final Conclusion: The computation of double taxation relief was resolved in the assessee's favour by applying the rule according to its plain language, with no reduction in the total income for the super-tax component.

Ratio Decidendi: Where a statutory formula expressly provides for deduction of exempt income for one component of a tax computation but omits any such deduction for another component, the omission must be given effect and the formula applied as written.

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