Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
The assessee company is eligible to claim Foreign Tax Credit (FTC) against its Minimum Alternate Tax (MAT) liability u/s 115JB of the Income Tax Act for taxes paid in China on royalty income. As per Article 23(2) of the Indo-China Tax Treaty, India shall allow deduction from the tax on income equal to the income tax paid in China. The scheme of the Act does not differentiate between tax liability calculated u/s 115JB and normal provisions. Since the assessee paid tax on royalty income in India at a higher rate than in China, it is eligible for the entire Tax Credit effected in China as FTC. The assessee is also eligible for FTC in the assessment year 2008-09 even though the corresponding royalty income was offered in the previous assessment year 2007-08, as per the amended provisions of Section 199. The CIT(A)'s direction to restrict MAT credit in subsequent years is unwarranted, as the second proviso to Section 115JAA(2A) is prospectively applicable from 01.04.2018.
The assessee company is eligible to claim Foreign Tax Credit (FTC) against its Minimum Alternate Tax (MAT) liability u/s 115JB of the Income Tax Act for taxes paid in China on royalty income. As per Article 23(2) of the Indo-China Tax Treaty, India shall allow deduction from the tax on income equal to the income tax paid in China. The scheme of the Act does not differentiate between tax liability calculated u/s 115JB and normal provisions. Since the assessee paid tax on royalty income in India at a higher rate than in China, it is eligible for the entire Tax Credit effected in China as FTC. The assessee is also eligible for FTC in the assessment year 2008-09 even though the corresponding royalty income was offered in the previous assessment year 2007-08, as per the amended provisions of Section 199. The CIT(A)'s direction to restrict MAT credit in subsequent years is unwarranted, as the second proviso to Section 115JAA(2A) is prospectively applicable from 01.04.2018.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4807 
Join Channel 
