Is Foreign Tax Deductible Expense ??

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The allowability of foreign tax payment as business expense has become controversial with the recebt judgment by ITAT , Ahmedabad in Masket Ltd vs DCIT (ITA No 1821/Ahd/2005, AY 2002-03) in which the Tribunal held that foreign tax paid by the assessee is covered u/s 40( a) (ii ) and accordingly disallowable as business expense…