COMMISSIONER OF INCOME TAX WEST BENGAL I, CALCUTTA vs CLIVE INSURANCE CO. LTD., CALCUTTA

The Supreme Court upheld the High Court's decision affirming the Tribunal's ruling that the respondent-assessee was entitled to relief under Section 49D of the Income Tax Act, 1922. The Court established that the assessee must demonstrate that income accrued outside taxable territories and that income tax was paid in the foreign jurisdiction. The Court clarified that the U.K. law allows companies to deduct tax from dividends, and the absence of a specific exemption for dividend income under U.K. law does not negate the applicability of Section 49D.