Income tax withheld outside India disallowed as deduction under section 37(1)

The Ahmedabad Bench of the Income-tax Appellate Tribunal held that income tax that is withheld (“deducted”) outside India is not allowed as a deduction under section 37(1) of the Income-tax Act, 1961 because the amount is covered under the “disabling provisions” of section 40(a)(ii). The case is: Elitecore Technologies Private Limited. Read an April 2017 report [PDF 369 KB] of KPMG