O. RM. M. SP. SV. FIRM vs THE COMMISSIONER OF INCOME-TAX-MADRAS

The Supreme Court held that the assessee was entitled to relief under Section 25(3) of the Income Tax Act, 1922, as the foreign business was charged under the provisions of the Income Tax Act, 1918. The Court clarified that tax charged on any business refers to tax on the owner of the business, and since the entire income of the foreign business was remitted to India, the assessee qualified for the exemption. Additionally, the Court ruled that rental income from house properties owned by the foreign firm also qualifies for relief under Section 25(3).