RAJU J.

The taxability and computation of income of a resident of India in respect of the income derived from a foreign source is the subject-matter of a batch of tax reference cases pending on the file of this court. An adjudication of the issues raised depends upon the agreement entered into between the Government of India and the Government of Malaysia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes of income published in Notification No. 1705/F. No. 11 (43)/46-FTD dated July 1, 1977. Learned counsel appearing in some of the cases have selected a few of the representative cases which could be decided initially so that the other cases could be ultimately decided applying the ratio of these cases. Though the terms of reference in different cases vary, the core of the problem and the basic issues involved for adjudication are similar and identical and, consequently, these cases are taken up for consideration together Tax Case No. 264 of 1983 : The assessee in this case is a firm owning certain rubber estates in Malaysia. During the assessment year 1977-78, the assessee earned an income of Rs. 88, 424. The assessee also sold