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@Vinay The test *is* broken in theory, because it uses today's time.timezone to make calculations over a datetime in the past (1993), even when official time zones have changes in recent years for Caracas, Moscow, and others: http://www.timeanddate.com/news/time/. As it is, the test will pass on some locations and fail on others, even if time.timezone is correct.
If time.timezone is wrong for certain locations is a separate issue that I will post as soon as I complete the unit test. I took a look at Modules/timemodule.c,and there seems to be nothing wrong there.
In short, the bug is: test_time() incorrectly uses the current time.timezone to make calculations over dates in the past.