Appeals Dismissed: Foreign Tax Credit Upheld for Interest Income

The appeals by Revenue against CIT(A)'s direction to allow credit for Foreign Tax on interest income for assessment years 2011-12 and 2012-13 were dismissed. The Tribunal upheld the CIT(A)'s decision based on a previous order, where the appellant's claim for tax credit on interest income from a foreign entity was accepted. The impugned orders for both years were upheld, affirming the allowance of Foreign Tax credit on interest income.

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Issues:
Appeals by Revenue against CIT(A) direction to allow credit for Foreign Tax under section 251(1) of the Act for assessment years 2011-12 and 2012-13.

Analysis:
1. Assessment Year 2011-12:
- The appellant provided unsecured loans to its subsidiary, Emcure Pharmaceuticals, USA Inc., with tax deducted at the source by the foreign company on interest income.
- The AO initially disallowed credit for TDS in the assessment under section 143(3).
- The appellant filed a rectification application under section 154 to claim TDS credit, which the AO rejected.
- The CIT(A) allowed the appellant's claim, leading to the Revenue's appeal.
- The Tribunal, in a previous order, upheld the appellant's claim for tax credit on interest income for the same year.
- The current appeal, arising from the order under section 154, became unnecessary due to the Tribunal's previous decision, resulting in the impugned order being upheld.

2. Assessment Year 2012-13:
- The circumstances for this year mirrored those of the previous year, with the AO again denying tax credit on interest income from the foreign entity.
- The appellant challenged the order under section 143(3), leading to the Tribunal accepting the claim.
- The CIT(A) followed the Tribunal's decision and allowed the appellant's claim for tax credit.
- Given the similarities with the previous year's case, the impugned order was upheld for this assessment year as well.

In conclusion, both appeals by the Revenue were dismissed, with the Tribunal upholding the CIT(A)'s decision to allow credit for Foreign Tax on interest income for both assessment years 2011-12 and 2012-13, based on the previous Tribunal order for the same issue.

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