https://www.taxtmi.com/caselaws?id=401977 Foreign tax credit under the India-Japan treaty could not be denied where Japan withheld tax on an Indian partnership firm's professional fees on a reasonable treaty-based interpretation. Article 23(2)(a) was read with Articles 12(4) and 14 harmoniously, and Article 14 was treated as applying to individuals, so the Article 12(4) exclusion did not override the source-state taxation. The source-country levy was therefore treated as tax paid in accordance with the treaty, entitling the assessee to foreign tax credit. The denial of credit was set aside and the assessee's appeal succeeded. en-us Fri, 18 Dec 2020 00:00:00 +0530 Mon, 21 Dec 2020 12:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=401977 Foreign tax credit under the India-Japan treaty could not be denied where Japan withheld tax on an Indian partnership firm's professional fees on a reasonable treaty-based interpretation. Article 23(2)(a) was read with Articles 12(4) and 14 harmoniously, and Article 14 was treated as applying to individuals, so the Article 12(4) exclusion did not override the source-state taxation. The source-country levy was therefore treated as tax paid in accordance with the treaty, entitling the assessee to foreign tax credit. The denial of credit was set aside and the assessee's appeal succeeded. Case-Laws Income Tax Fri, 18 Dec 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=401977