Foreign taxes are deductible on real income theory & not deductible to the extent they are eligible for relief u/s 90 & 91

(j) This Court in Inder Singh Gill (supra) was required to answer the question whether for the purpose of computing total world income of the assessee as defined in Section 2(15) of the I. T. Act, the income accruing in Uganda has to be reduced by the tax paid to the Uganda Government in respect of such income? The Court while answering the question in the negative observed that it is not aware of any commercial principle / practice which lays down that the tax paid by one on one’s income is allowed as a deduction in determining the income for the purposes of taxation. (k) It is axiomati...