18,113 that the Income Tax Officer assessed that both the incomes are assessable in India and brought the same to tax that the respondent filed an appeal before the Commissioner of Income Tax Appeals who held that under Article 7 1 of the Avoidance of Double Taxation of Income and Prevention of fiscal Evasion of Tax unless the respondent has a permanent establishment of the business in India such business income in Malaysia cannot be included in the total income of the assessee and, therefore, numberpart of the capital gains arising to the respondent in the foreign companyntry companyld be taxed in India.
These appeals involve following two questions for our companysideration although several other questions were companysidered by the High Court Whether the Malaysian income cannot be subjected to tax in India in the basis of the agreement of avoidance of double taxation entered into between Government of India and Government of Malaysia?
2004 Supp 2 SCR 697 The Judgment of the Court was delivered by RAJENDRA BABU, CJ.
This order was carried in appeal to the Tribunal.
Thereafter, the matter was carried by way of a reference to the High Court.
