Section 160 — Countries with which no agreement exists

(1) If any person who is resident in India in any tax year proves that, in
respect of his income which accrued or arose during that tax year outside
India (and which is not deemed to accrue or arise in India), he has paid in any coun-
try with which there is no agreement under section 159 for the relief or avoidance
of double taxation, income-tax, by deduction or otherwise, under the law in force
in that country, he shall be entitled to the deduction from the Indian income-tax
payable by him of a sum calculated on such doubly taxed income,—
( a) at the Indian rate of tax or the rate of tax of the said country, whichever
is the lower; or
( b) at the Indian rate of tax if both the rates are equal.
(2) If any non-resident person is assessed on his share in the income of a registered
firm assessed as resident in India in any tax year and such share includes any income
accruing or arising outside India during that tax year (and which is not deemed
to accrue or arise in India) in a country with which there is no agreement under
section 159 for the relief or avoidance of double taxation and he proves that he has
paid income-tax by deduction or otherwise under the law in force in that country
in respect of the income so included he shall be entitled to a deduction from the
Indian income-tax payable by him of a sum calculated on such doubly taxed income
so included,—
( a) at the Indian rate of tax or the rate of tax of the said country, whichever
is the lower; or
( b) at the Indian rate of tax if both the rates are equal.
(3) For the purposes of this section,—
( a) “income-tax” in relation to any country includes any excess profits tax
or business profits tax charged on the profits by the Government of any
part of that country or a local authority in that country;
( b) “Indian income-tax” means income-tax charged as per this Act;
( c) “Indian rate of tax” means the rate determined by dividing Indian
income-tax after deduction of any relief due under the provisions of this
Act but before deduction of any relief due under this Part, by the total
income; and
( d) “rate of tax of the said country” means income-tax and super-tax actually
paid in the said country as per the corresponding laws in force in the
said country after deduction of all relief due, but before deduction of
any relief due in the said country in respect of double taxation, divided
by the whole amount of the income as assessed in the said country.