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2008 (10) TMI 387 - HC - Income TaxDeduction under section 80HHB of the Income-tax Act - assessee had executed certain contracts in the countries, viz., Oman and Qatar - foreign currency earned from the said project was partially used for repaying the loan taken in foreign currency in the foreign country for executing the said project – Held that:- Loan amount was paid in foreign currency is not disputed and even if the entire foreign currency was brought into India, the assessee would have been required to remit the foreign currency to discharge the loan taken in foreign currency for executing the project. Therefore, assessee is entitled to claim deduction under section 80HHB of the Income-tax Act Exclusion of profit - profit earned in Oman – Held that:- Assessee has a permanent establishment at Oman and the assessee has been taxed in respect of the income earned from the said establishment under the provisions of the income tax law at Oman - in the light of article 7 of the Double Taxation Avoidance Agreement (DTAA) entered into by and between India and Oman - decision of the Tribunal in excluding the profit earned from the permanent establishment at Oman cannot be faulted.
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