S. 90(2) applies to the extent beneficial to assessee

Coming to the issue as to whether the AADT with Malasia would disentitle the deduction we agree with the submissions of the assessee that the whole world income is taxable in the hands of the assessee under the provisions of the Act and when it is done so, section 90(2) mandates that the provisions of this Act shall apply to the extent they are more beneficial to the assessee.

The assessee does have an option of being assessed under the normal provisions of the Act as claimed by the, learned Counsel. The Act directs and the section makes it compulsory for the Assessing Officer to apply the provisions of the Act to the extent they are more beneficial to the assessee. When so applied in this case, the net income would be a negative figure and the provisions of the Act would be more beneficial to the assessee.

INCOME TAX APPELLATE TRIBUNAL, MUMBAI

ITA NO. 7617/MUM/2005(A.Y.2002-03)

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