The Mumbai ITAT, in Tata Communications Transformations Services Ltd. v. DCIT [2026], held that foreign taxes cannot be claimed as a deduction merely because the Foreign Tax Credit (FTC) remains unutilised. The Tribunal clarified that Section 40(a)(ii) disallows foreign taxes that are eligible for relief under Sections 90/91, regardless of whether the credit is actually used. For businesses in loss years, foreign withholding taxes may therefore become a sunk cost, making FTC planning crucial.
Subscribe to:
Post Comments (Atom)
When a Subsidiary Investment Becomes a Business Loss
Key Takeaways Shares in a subsidiary are not automatically capital assets merely because they are shares. Three High Courts have recognize...
-
Slump sale is transfer of one or more business undertakings for a lump sum consideration, without assigning individual values to the each...
-
Facts Centrica India Offshore Private Limited (CIO), an Indian Company, is a wholly owned subsidiary of Centrica Plc, UK Centrica Plc a...
-
SREI Infrastructure Finance Ltd vs. ITSC (Delhi High Court) The assessee entered into a scheme of arrangement u/s 391-394 of the Compani...
-
Facts The taxpayer, a partnership firm, derived income from the business of handling and transport of ship containers, customs clearing a...
-
The Tax Audit season has started and it’s the time when the Assessees rush to their Chartered Accountants (CA) to get their Tax Audit d...
-
01. TDS u/s 194J is required to be done for Royalty also w.e.f 13-7-2006. 02. Royalty had been defined under explanation 2 of se...
-
M/s. Alpha Projects Society P. Ltd vs. DCIT (ITAT Ahmedabad) In AY 2005-06, the assessee made payments to contractors & for professi...
-
CIT vs. Kan Construction And Colonizers (P) Ltd (Allahabad High Court) The assessee sold a plot of land for Rs. 79 lakhs. The AO held th...
-
1. Concept of “limited liability partnership” LLP is an alternative corporate business form that gives the benefits of limited liability ...
-
E very non-resident individual or organisation should obtain a Permanent Account Number (PAN) number if they receive an income and...
No comments:
Post a Comment