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1 - 5 of 5 (0.16 seconds)The Income Tax Act, 1961
Section 90 in The Income Tax Act, 1961 [Entire Act]
Article 2 in Constitution of India [Constitution]
M/S. Tata Motors Ltd., Mumbai vs Jt. Cit Spl. Rg. - 2, Mumbai on 6 January, 2017
"20. Learned counsel has also contended that in any event, we must
allow deduction in respect of state income-taxes paid in USA and
Canada as relief is not admissible in respect of the same in respective
tax treaties. We have been taken through India USA tax treaty to point
out that tax credits are admissible only in respect of Income-tax levied
by the federal Government and not by the State Governments. It is
contended that since no relief is admissible in respect of state taxes
under section 90 or section 91, these taxes will continue to be tax
deductible, and to that extent, decisions of the coordinate benches will
hold good. We are unable to see legally sustainable merits in this
submission either. Apart from the fact that such a claim of deduction is
clearly contrary to the law laid down by Hon'ble jurisdictional High
Court in Lubrizol India Ltd.'s case (supra), there is another independent
reason to reject this claim as well. The reason is this. It is only
elementary that tax treaties override the provisions of the Income-tax
Act, 1961, only to the extent the provisions of the tax treaties are
beneficial to the assessee. In other words, a person cannot be worse
off visa-vis the provisions of the Income-tax Act, even when a tax treaty
applies in his case. Section 90(2) states that even in relation to the
assessee to whom a tax treaty applies "the provisions of this Act shall
apply to the extent they are more beneficial to that assessee".
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