Law:

Section:

Section 49 (before amendment in 1947), read with section 50, of the Indian Income-tax Act, 1922, read with rule 40 of the Indian Income-tax Rules, 1922 - Double taxation relief - Assessment years 1940-41 to 1943-44 - Assessee non-resident-company having income derived in India and outside India claimed relief vide its two letters in respect of United Kingdom tax which was accepted by income-tax authorities - Subsequently, income-tax authorities in proceedings under section 34 of 1922 Act disallowed relief from double taxation in respect of escaped income on grounds that it was time barred and not properly made in prescribed form and also that provisional claim could not be deemed to include claim in respect of tax levied in re-assessment made after date on which claim was made - Whether practice followed by income-tax department of entertaining provisional claim did not violate either section 49 or section 50 as neither of them prescribed how or in what manner claim for relief was to be made but only laid down conditions which assessee must satisfy before he was entitled to refund, and, consequently claim in any form, if made within four years, would satisfy requirement of statute - Held, yes - Whether words 'shall' and 'form' used in rule 40 are directory and not mandatory and any breach of form cannot vitiate claim - Held, yes - Whether assessee's two letters, when treated as notices of claim under section 49, must cover a claim not merely for original assessment but also for any escaped income assessment, proceedings of which might arise even subsequently, on ground that such further proceeding under section 34 related to same assessee for same year and to same assessment with only difference that escaped income was being assessed with no right of objection by assessee to question original assessment or to reopen it - Held, yes - Whether, therefore, claims in instant case were made within period of four years as required by section 50 and thus, refund claims were not barred by limitation - Held, yes FACTS The assessee was a non-resident sterling company. Dividend was its only source of income from India. It had also income which accrued or arose outside…

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