2006 (2) TMI 598

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.... ORDER (Order of the Court was made by P. D. Dinakaran, J, ) Heard. The appeal is directed against the order of the Income Tax Appellate Tribunal Madras Bench "A" dated 05.03.2001 in I.T.A.No.3236 /Mds/1992. 2.1. The assessee, is a company deriving income from Plantation situated in Malaysia. The assessee claimed the income from Malaysia as exempt and filed income for the assessment....

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....al before the Income Tax Appellate Tribunal, and the Tribunal, following the decision of this Court in the case of SRM firm (208 ITR 400), held that the income form Malaysia cannot be taxed in India and dismissed the appeal. Hence, the present appeal by the Revenue. 4. The issue that arises for consideration in this appeal is whether the income derived by the assessee from Malaysia can be inclu....

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....ty where the liability is not imposed by a local Act. Where tax liability is imposed by the Act, the agreement may be resorted to either for reducing the tax liability or altogether avoiding the tax liability. In case of any conflict between the provisions of the agreement and the Act, the provisions of the agreement would prevail over the Act in view of the provisions of Section 90(2). Section 90....