Development agreements require legal possession or effective enjoyment for capital gains transfer; permissive possession and deferred consideration de...
Prolonged sterilisation of development rights supports capital-gains treatment, while business-income disallowances cannot govern capital-gains comput...
Additional evidence in transfer pricing dispute leads to fresh examination, while tax deductions, TDS credit, fee and refund interest require verifica...
Category II AIF pass-through taxation preserves non-business income character; investment receipts cannot be reclassified without applying recognised ...
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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.
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