2022 (9) TMI 557

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....lized Processing Center (CPC), Bengaluru u/s. 143(1) of the Act. The grounds taken by the assessee read as under: Ground No. 1: Non grant of Foreign Tax Credit ('FTC') of Rs. 12,03,837 On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in confirming the action of the Ld. Assessing Officer, CPC (Ld. AO) of making the adjustment in the Intimation under Section 143(1) of the Act of not allowing Foreign Tax Credit ('FTC') of Rs. 12,03,837 allowable as per Section 90 of the Income-tax Act, 1961 ('Act') read with Article 22(3) of the India- South Africa Double Taxation Avoidance Agreement ('DTAA'), It is prayed that the Ld Assessing Officer be directed to gra....

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....t (FTC) as claimed by the assessee u/s 90 r.w. Article 22(a) of the India South Africa Double Taxation Avoidance [DTAA]. Aggrieved, the assessee preferred further appeal against the same. 3. During appellate proceedings, it transpired that the assessee was employed with Shell India Markets Pvt. Ltd. [SIMPL]. The assessee went on a short-term international assignment to South Africa from 03- 10-2017 to 14-04-2018. Thus the assessee was Resident and Ordinarily Resident (ROR) and continued to be on the payroll of SIMPL. M/s SMIPL issued Form-16 for the entire period which include salary for services rendered in India as well as services rendered outside India. Since assessee was ROR in India, its global income was taxable in India. For serv....

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....ant was ROR during the relevant year, his global income was taxable in India. In his return, appellant claimed foreign tax credit in respect of the tax paid in South Africa, on the income earned in South Africa in terms of Section 90/90A of the IT. Act and Indo- South Africa DTAA, as such income has also been included in the Global income taxed in India. CPC in the Intimation u/s 143(1) of the IT. Act did not allow the Foreign Tax Credit claimed by the appellant. Aggrieved, the appellant filed the present appeal. Hence, the only relevant issue for adjudication is claim of Foreign Tax Credit in respect of tax paid by the appellant in South Africa on the income earned in that country. 5.2. The written submission filed by the appellan....

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.... While giving effect to this order, the Assessing Officer should re-compute the correct income on the basis of original return as well as computation of income filed, charge correct amount of tax and give credit for prepaid taxes. 6. In effect, the appeal is Partly Allowed. The Ld. CIT(A) denied the credit on the ground that the tax was not paid by the assessee and secondly Form 67 was filed belatedly. Aggrieved, the assessee is in further appeal before us. 5. We find that the CPC has accepted the revised income of Rs.56.40 Lacs as filed by the assessee. The only dispute is with respect to FTC. The Ld. CIT(A) has noted that FTC has not been paid by the assessee but by his employer and therefore, no credit of the same could be....