TMI Blog2013 (2) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... rpretation 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. - IT APPEAL NO. 3653 OF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es as expenditure being the overseas compensation paid to the employees of the oil companies seconded abroad under the head 'seconded personnel expenses'. The assessing officer by his order dated 29th March 2000 disallowed the amount of Rs. 3.93 crores paid to seconded employees on account of its failure to deduct tax at source under Section 192 of the Income Tax Act, 1961 ('the Act'). Therefore, the payment was hit by Section 40(a)(iii) of the Act. (ii) In appeal, both the Commissioner of Income Tax (A) as well as the Income Tax Appellate Tribunal have recorded a finding of fact that these seconded personal continue to be the employees on the roll of the member oil companies even during the period of secondment. These seconded employees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered is whether or not the income arising abroad in the previous year has suffered tax abroad. The case of the appellant - Revenue that the benefit of Section 91(1) of the Act would be available only when payments of taxes have been made in the previous year relevant to the assessment year under consideration. We find that the Tribunal correctly held that such a requirement is not found in Section 91(1) of the Act. The object of Section 91(1) of the Act 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 pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
