The Indian High Court issued its decision on 10 January 2013 in the case of CIT v. Petroleum India International (ITA No. 3653 OF 2009) that, in absence of the tax treaty between India and Kuwait, the taxpayer is entitled to claim unilateral foreign tax credit under the Indian Income Tax Act 1961 notwithstanding the fact that the foreign taxes are not paid during the current tax year.
While delivering its decision, the High Court considered that the basis for claiming relief i…