No deduction allowable if domestic law prohibits the same

General Motors Overseas Corporation Vs ACIT (ITAT Mumbai)

Conclusion:  Once the domestic law prohibits allowing any deduction for the purpose of calculating ‘fees for technical services/fees for included services’, then, the same was not an allowable deduction and, therefore, AO and CIT(A) were right in holding that the assessee was liable to be taxed on gross basis rather than on net basis.

Held: Assessee -company was incorporated in and tax resident

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