1979 (2) TMI 76

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....the facts and in the circumstances of the case, the Tribunal was right in holding that the Income-tax officer was justified in adopting the value equivalent to Indian rupee for the value of the income in Ceylon at the official rate of exchange? " In the other tax cases heard along with this case, namely, T.C. Nos. 391 land 392 of 1975, the questions of law referred in those cases are identical and, therefore, they need not be reproduced. For our present purpose, it is enough to set out the facts in the case of the assessee in T.C. No. 364 of 1975, as there is no dispute that the facts in the connected cases are similar. The assessee, an individual, had income in India as well as in Ceylon. While accepting the return for the assessment ye....

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.... income earned in Ceylon will have to be converted into Indian rupees. For this purpose, during the relevant years, r. 115, as in force, ran as follows : " The rates of exchange for the calculation of the value in rupees of any income shall be as follows:-- (a) in respect of income accruing or arising or deemed to accrue or arise to the assessee or received or deemed to be received by him or on his behalf before the 6th day of June, 1966-- (i) 1 sh. 6 d.= Re. 1 ; (ii) U.S. $ 1 = Rs. 4.762; (b) in respect of income accruing or arising or deemed to accrue or arise to the assessee or received or deemed to be received by him or on his behalf on or after the 6th day of June, 1966-- (1) where such income accrues or arises or is ....

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....The language of the rule does not appear to suggest this construction. The rule-making authority was to make a rule in order to provide for the conversion of income earned in any foreign currency. The idea was to fix a rough and ready method so that the ITO had not to hunt for himself the prevailing exchange rates of different currencies in relation to the Indian currency at different points of time. Subsequently, this rule itself has been changed and under the amended rule it was provided : " The rate of exchange for the calculation of the value in rupees of any income accruing or arising or deemed to accrue or arise to the assessee in foreign currency or received or deemed to be received by him or on his behalf in foreign currency shal....