Assessee entitled to 50% relief on foreign income tax per High Court ruling.

The High Court of Rajasthan held that the assessee is entitled to relief under section 91(1) of the Income-tax Act, 1961, for only fifty percent of the total foreign income tax paid. The Tribunal's decision to allow the full deduction claimed by the assessee was deemed unjustified. The reference under section 256(1) was answered in favor of the assessee, with no costs awarded.

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The High Court of Rajasthan ruled that the assessee is entitled to relief under section 91(1) of the Income-tax Act, 1961, for only fifty percent of the total foreign income tax paid. The Tribunal was not justified in allowing the full deduction claimed by the assessee. The reference under section 256(1) was answered accordingly with no costs.

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