The ITAT allowed the assessee's appeal regarding foreign tax...

The ITAT allowed the assessee's appeal regarding foreign tax credit for state taxes paid in the United States under Section 91, despite the existence of an India-USA DTAA. The Tribunal rejected Revenue's contentions, noting that the issue was no longer res integra following the Karnataka HC decision in Wipro Ltd., which established that both federal and state taxes stand on equal footing for foreign tax credit claims. Although Revenue cited a contrary ITAT Delhi ruling in Manpreet Singh Gambhir, the Tribunal held that judicial discipline required following the higher judicial forum's decision. The AO was directed to compute the consequential relief accordingly.