The Mumbai Income Tax Appellate Tribunal issued its decision on 4 March 2021 in a case concerning whether a refund may be claimed in respect of foreign tax credits in a loss-making year.
The case involved the Bank of India, which in the year concerned paid foreign tax amounting to approximately INR 1.8 billion in foreign taxes on income earned from its foreign branches in several treaty and non-treaty jurisdictions. Further, the Bank suffered a loss for the year exceeding INR 1.9 billion. W…