Indian Nationals having income arising in Pakistan--Collection of tax--Clarification regarding

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....f tax--Clarification regarding. Reference is invited to Board's Circular No. 25 issued under its F.No. 9/20/68-ITA-II dated 25th July, 1969.* Para. 2(a) of the said circular relating to sub-section (7) of section 220 reads as under: "The Income-tax Officers ask the assessees to pay tax on their Indian income at the rate applicable to the total income which includes income arising in Pakistan. Th....

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.... the Madras High Court had occasion to interpret sub-section (7) of section 220 of the Income-tax Act, 1961, as also to examine the scope and the correctness of the portion of the Board's Circular extracted in the preceding paragraph. The observations of the High Court thereon are reproduced below ([1979] 117 ITR 412, 418 (Mad)): "We have no hesitation whatever in concluding that the method to be....

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....d there that the tax on the Indian income must be determined by treating Indian income as the total income of the assessee and only that amount of tax should be recovered from the assessee. We are constrained to say that this direction by the CBDT is a direction diametrically opposed to the statutory provision; a direction which we are unable to support on the basis of any provision under the Act ....