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2013 (2) TMI 99 - BOMBAY HIGH COURTNon deduction of TDS - disallowance u/s 40(a)(iii) - Held that:- In view of the finding of fact arrived at that the seconded personnel are not the employees of the respondent-assessee, the amount paid as foreign allowances to the seconded personal is not liable for deduction of tax as they continue to be the employees on the roll of the member oil companies even during the period of secondment & receive their salaries and emoluments from the member oil company of which they are employees & not being employees of the respondent-assessee. The occasion to apply Section 40(a)(iii) does not arise. Interpretation of Section 91(1) - whether assessee entitled to take double taxation benefit for the taxes paid in Kuwait only during the current year and not during previous years or on provisions for future period - Held that:- The object of Section 91(1) is to give relief from taxation in India to the extent taxes have been paid abroad for the relevant previous year. This deduction/relief is not dependent upon the payment also being made in the previous year. The fact that the payment of taxes on the income earned in Kuwait during the previous year has been examined and found to be correct by the CIT(A) before whom original documents evidencing payment of taxes had been produced the is not required to be entertained.
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