The Tribunal held that State taxes paid in foreign jurisdictions, which were not eligible for relief under sections 90 or 91, were outside the scope of Explanation 1 to section 40(a)(ii). Consequently, such taxes were allowable as business expenditure. (AY. 2014-15).
Tata Consultancy Services Ltd. v. Dy. CIT [2023] 154 taxmann.com 372 / (2025) 129 ITR 667 (Mum.)(Trib.)
S. 40(a)(ii) : Amounts not deductible-Rates or tax-State taxes paid overseas-Not eligible for relief under sections 90 or 91-Deduction allowable.[S.37(1), 90, 91]
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