(Appeal by special leave from the judgment and order, dated 20th September, 1977 of the Madras High Court in W.P. No. 359 of 1975).

Income-tax---

----Recovery of tax---Assessment of both Indian and foreign income---Foreign income not remittable to India---Relief---Computation---Average rate arrived at by clubbing both Indian and foreign income to be applied---Indian and foreign incomes not to be separately assessed---Circular No.25, dated July 25, 1969---Relief in relation to Pakistan income---Direction to treat Indian income as total income---Not valid---Contrary to statutory provisions---Indian Income Tax Act, 1961, S.220(7).

Against the decision of the Madras High Court in A.C. Paul v. TRO (1979) 117 1TR 412 to the effect (i) that, in a case of assessment of both Indian and foreign income; where the foreign income cannot be remitted to India, while recovering the tax, the relief to be granted under section 220(7) of the Income Tax Act, 1961, in relation to the foreign income, was to be arrived at by finding the average rate of tax determined by clubbing the Indian income and the foreign income, and (ii) that the direction in Circular No.25, dated July 25, 1969 (see (1969) 73 ITR (St.) 23), that in granting relief in similar circumstances in relation to Pakistan income, income was to be determined by treating the Indian income as the total income was diametrically opposed to the statutory provision and the appellant, who had substantial income from Ceylon and very little Indian income, could not claim to be treated on the same basis as that of the Circular which was invalid, the appellant preferred an appeal to the Supreme Court. The Supreme Court dismissed the appeal holding that there was no reason to take a different view. A.C. Paul v, TRO (1979) 117 ITR 412 affirmed. G. Venkateshwar Rao and A.V. Rangam for Appellant. Ms. A. Subhashini for Respondents.

JUDGMENT

We have heard Sri G. Venkateshwar Rao, learned counsel for the appellant. We find no reason to take a view different from the one which commended itself to the High Court. The appeal is dismissed with no order as to costs.

M.B.A./2303/TAppeal dismissed.