Double taxation relief is limited to the same income taxed in both jurisdictions, not composite world-income aggregation.

Relief from double taxation under section 49D depends on identity of the income taxed in both jurisdictions: only income that has actually suffered tax under Indian law and a foreign tax system can be treated as doubly taxed. Indian income from other sources, which had not itself borne foreign tax, could not be included in the relief computation merely because it formed part of total world income for Indian tax purposes. The allowance is confined to factual double taxation of the same income, not a notional set-off or composite aggregation. On that basis, relief for the assessee was not available on the Indian income from other sources.

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Issues: Whether relief from double taxation under section 49D could be computed by including Indian income from other sources which had not itself suffered foreign tax, and whether relief was confined to identical income charged both in India and in the foreign jurisdiction.

Analysis: The relief contemplated by section 49D was held to depend on the identity of the income subjected to tax in both jurisdictions. The proper enquiry was whether the same income had suffered tax under Indian law and under a foreign jurisdiction. Indian income that had not itself borne foreign tax could not be brought within the computation of doubly taxed income merely because it formed part of the total world income for Indian tax purposes. The court approved the principle that the allowance is confined to factual double taxation of the same income and not to a notional or composite computation based on set-off or aggregation of figures.

Conclusion: The assessee was not entitled to double taxation relief on the Indian income from other sources, and the computation of relief made on the basis adopted by the Commissioner was upheld.

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