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2016 (12) TMI 1293 - HC - Income TaxClaim for deduction under Section 80HHB - contribution to the Foreign Project Reserve Account - Held that:- The non-satisfaction of the conditions necessary to be fulfilled to avail of the benefit of Section 80HHB of the Act would disentitle a party from claiming its benefit. Accepting the submissions on behalf of the applicant would mean ignoring the conditions specified in subsection (3) of Section 80HHB of the Act, which the Court cannot do. The further reliance on the part of the applicant on Section 80HHC of the Act to bolster its case, is not of any assistance. This is so, as the conditions required to be satisfied to avail of the benefit of Section 80HHB of the Act is different from that to be satisfied for the purposes of Section 80HHC of the Act. Therefore, the manner in which the Courts construe Section 80HHC of the Act would be of no assistance to construe Section 80HHB of the Act as the wordings of the conditions to be satisfied in both the sections are entirely different. In fact, there is no obligation under Section 80HHC of the Act to create a separate fund as in the case of Section 80HHB of the Act. Therefore the reliance upon the decision of this Court in Karimjee Pvt. Ltd. (2000 (2) TMI 60 - BOMBAY High Court) is not of any assistance to the applicant as it was rendered in the context of different provision of law, differently worded. Decided in favour of the respondent Revenue and against the applicant assessee Doubly taxed income for the purpose of computing the DIT relief under Section 91 - amount deducted under 80HHB and weighted deduction allowed under Section 35B - Held that:- It is only when the Income has paid tax abroad and also bears the burden of discharging tax thereon under the Indian Act that it would become such doubly taxed income. The amounts claimed as deduction under Section 80HHB and Section 35B of the Act admittedly do not bear any tax in India, therefore, no relief can be granted under Section 91 of the Act to the deduction claimed of ₹ 47.30 lakhs under Section 80HHB and ₹ 5.59 lakhs claimed under Section 35B of the Act. - Decided against the applicant assessee and in favour of the respondent Revenue. Tax paid in Saudi Arabia on which no DIT relief could be claimed was not allowable as deduction in computing the income under the provisions of the Income-Tax Act - Held that:- It is not disputed before us that some part of the income on which the tax has been paid abroad is on the income accrued or arisen in India. Therefore, to the extent, the tax is paid abroad on income which has accrued and/or arisen in India, the benefit of Section 91 of the Act is not available. In such a case, an Assessee such as the applicant assessee is entitled to a deduction under Section 40(a)(ii) of the Act. This is so as it is a tax which has been paid abroad for the purpose of arriving global income on which the tax payable in India. Therefore, to the extent the payment of tax in Saudi Arabia on income which has arisen / accrued in India has to be considered in the nature of expenditure incurred or arisen to earn income and not hit by the provisions of Section 40(a)(ii) of the Act. - Decided against the Revenue and in favour of the applicant assessee.
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