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2022 (6) TMI 143 - AT - Income TaxDeduction u/s 91 r.w.r 128 - credit for the amount of foreign tax paid by him by way of deduction - computing the effective rate of tax in Ghana - agreement for double taxation relief for avoidance of double taxation - deductions as calculate by applying the lower of ‘effective Indian rate of tax’ or ‘effective rate of tax of other country’ (Ghana) on ‘such doubly taxed income’ - HELD THAT:- The expression ‘rate of tax of the said country’ means income-tax and super-tax actually paid in the said country in accordance with the corresponding laws in force in the said country after deduction of all relief due but before deduction of any relief due in the said country in respect of double taxation divided by the whole amount of income as assessed in the said country. Tax actually paid is Ghana is Rs.1,05,36,759. The assessee has not brought anything on record to show what is the income assessed in Ghana. AR during the course of the hearing submitted that the said details are not available with the assessee. Thus for the purpose of computing the net profit ratio of total income of the assessee in India which is used as the basis for arriving at the net income of Ghana should include ‘other income’. We have also held that the ‘effective Indian rate of tax’ should include surcharge and education cess i.e. 20.01%. The calculation of deduction u/s.91 as done in the above table is in accordance with our views expressed in the foregoing paragraphs and is a reasonable basis of arriving at the effective rate of tax for Ghana. Hence we are of the considered view that it is reasonable to allow the deduction u/s.91 to the assessee. AO is therefore directed to re-compute the income of the assessee. Appeal of the assessee is partially allowed.
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