https://www.taxtmi.com/highlights?id=85792 ITAT ruled against taxpayer's claim for deduction of foreign taxes under s.37(1) beyond credits available under s.90/91. Court held that s.40(a)(ii) explicitly prohibits deduction of any taxes on business profits, including foreign taxes. The explanation to s.40(a)(ii) only excludes relief available under s.90/91, but does not make excess foreign taxes automatically deductible. DTAAs represent sovereign agreements with negotiated taxing rights, and their prescribed mechanism under s.90/91 cannot be circumvented. The unambiguous statutory prohibition in s.40(a)(ii) prevails, precluding additional deduction under s.37(1). Appeal dismissed, upholding AO's and CIT(A)'s orders. en-us Mon, 17 Feb 2025 08:48:33 +0530 Mon, 17 Feb 2025 08:48:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=85792 ITAT ruled against taxpayer's claim for deduction of foreign taxes under s.37(1) beyond credits available under s.90/91. Court held that s.40(a)(ii) explicitly prohibits deduction of any taxes on business profits, including foreign taxes. The explanation to s.40(a)(ii) only excludes relief available under s.90/91, but does not make excess foreign taxes automatically deductible. DTAAs represent sovereign agreements with negotiated taxing rights, and their prescribed mechanism under s.90/91 cannot be circumvented. The unambiguous statutory prohibition in s.40(a)(ii) prevails, precluding additional deduction under s.37(1). Appeal dismissed, upholding AO's and CIT(A)'s orders. Highlights Income Tax Mon, 17 Feb 2025 08:48:33 +0530 https://www.taxtmi.com/highlights?id=85792