Section 90(1) of the Income Tax Act
Income-tax Act, 2025: s.159
Section 90(1) falls under section 90 of the Income-tax Act, 1961, which corresponds to section 159 (Agreement with foreign countries or specified territories and adoption by Central Government of Agreement between Specified associations for double taxation relief) of the Income-tax Act, 2025.
Read section 159 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 90(1) is CIT v. Sitaldas Tirathdas (41 ITR 367), cited in 146 of the 45 judgments on BharatTax that turn on this section.
Leading authorities on Section 90(1)
Income is diverted by an overriding charge, and thus not taxable, when it never truly accrues to the assessee due to a prior obligation. Conversely, income that first accrues to the assessee and is then applied to discharge an obligation out of that income is taxable.
The Multilateral Instrument (MLI) does not become legally enforceable under domestic law without a specific notification under section 90(1) of the Income Tax Act, 1961, for each affected Double Taxation Avoidance Agreement (DTAA).
The applicability of a tax treaty can determine the levy of surcharge on income. When a tax treaty is decided in favour of the assessee, related grounds of appeal concerning surcharge may not require separate adjudication.
Surcharge and education cess levied on income taxable at special rates are to be deleted, as the tax treaty provisions have been decided in favour of the assessee. The case is authority for the proposition that such levies can be challenged and deleted based on treaty benefits.
Decisions affirmed by the ITAT and consistent with Supreme Court and High Court rulings are followed. This case is cited as authority for procedural matters related to assessments and disallowances under Section 14A.
A decision is supported by earlier judgments when it is listed among other relevant case law, indicating a consistent legal principle or application.
A tax treaty can determine the levy of surcharge, and when issues regarding surcharge and the tax treaty are decided in favour of the assessee, other related grounds may not require separate adjudication.
A notification under Section 90(1) is a mandatory condition for courts, authorities, or tribunals to give effect to a Double Taxation Avoidance Agreement (DTAA) or its protocols.
