Treaty relief for Malaysian share income upheld under the India-Malaysia DTAA, excluding it from taxable total income.

Malaysian share income was held not includible in the assessee's total income under the Income-tax Act in light of Article 22.1 of the India-Malaysia DTAA. The Tribunal followed its earlier Special Bench view and later Tribunal order, which had examined the treaty provision and prior judicial observations and concluded that such income could not be brought to tax in the assessee's assessment. The appellate authority's deletion of the addition was therefore upheld, and the Revenue's challenge failed.

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Issues: Whether the Malaysian share income received by the assessee was includible in the total income computed under the Income-tax Act, 1961, having regard to Article 22.1 of the India-Malaysia Double Taxation Avoidance Agreement.

Analysis: The matter was already considered in the Tribunal's Special Bench decision, and the later Tribunal order referred to and approved that view. The treaty provision and the earlier judicial observations were examined, and the conclusion reached was that the Malaysian income could not be included in the assessee's assessment. Following those orders, the appellate authority's deletion of the addition was upheld.

Conclusion: The Malaysian income was not includible in the assessee's total income; the Revenue's challenge failed.

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