2023 (6) TMI 1445

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....Appeal) erred in confirming the AO's stand in denying the credit of Rs. 3,58,088/-being tax withheld by the Japanese clients. 1.2 The Commissioner of Income Tax (Appeals) ought not to have confirmed the stand of AO in denying the credit for taxes withheld by the Japanese clients. 2.1 The Commissioner of Income Tax (Appeal) erred in not considering the honourable ITAT order passed for the Assessment year 2014-15 for petitioner in it's owned case for the identical matter which was submitted during the hearing before CIT(A). 2.2 The Commissioner of Income Tax (Appeal) ought to have considered the honourable ITAT order passed for the Assessment year 2014-15 for petitioner in it's owned case for the identic....

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....ofessional services or other activities of an independent character shall be taxable only in that contracting state unless if the assessee has a fixed base regularly available to him or his presence in the other contracting state exceed 183 days during the taxable years. The AO observed that in the case of the assessee since professional receipt derived by the assessee was in the nature of independent professional services, therefore, same was not subject to tax in Japan therefore, claim of foreign tax credit of Rs. 3,58,088/- was denied to the assessee. 3. Aggrieved, the assessee filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 4. During the course of appellate proceedings before us the....

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....e of the assessee for AY. 2014-15. The relevant operating part of the decision is reproduced as under: 9. In view of these discussions, there is a valid school of thought that in the scheme of the Indo Japanese tax treaty, article 14 for independent personal services holds the field for the individuals only- particularly in the light of the exclusion clause under article 12(4) being restricted to payment of fees for professional services to individuals alone. There is no dispute that the provisions of article 14 and article 12 are overlapping inasmuch as what is termed as professional service could also be covered by the fees for technical service particularly as the definition of the fees for technical services is on 'classica....