2026 (4) TMI 1125

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessee has raised the following grounds: - "1. The Commissioner of Income Tax (Appeal), National Faceless Appeal Centre failed to appreciate that the Appellant was entitled to the full relief of Rs. 84,16,067/- claimed by the Appellant under section 90/90A of the Act. Hence, the CIT (A) erred in granting only proportionate rebate to the Appellant. 2. The Appellant submits that the above grounds of appeal are in addition to, in the alternative and without prejudice to each other. The Appellant craves leave to add, amend, alter or delete any of the above grounds of appeal." 3. The solitary grievance of the assessee is against the denial of foreign tax credit under section 90/90A of the Act. 4. We have considered the su....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ant financial year. As regards the balance period from 01/01/2023 to 31/03/2023, the assessee submitted that the preparation and filing of the tax return for the Calendar Year 2023 (i.e. from 01/01/2023 to 31/12/2023) is in process, and he shall furnish the same upon receipt from the USA tax return preparer. 5. The Assessing Officer ("AO"), vide order dated 08/03/2025 passed under section 143(3) read with section 144B of the Act, held that since the assessee's return of income in USA has been filed only for the period starting from 01/04/2022 to 31/12/2022, and the return of income for the remaining period starting from 01/01/2023 to 31/03/2023 is yet to be filed, it is quite clear that the assessee has not been able to exactly quantify ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sment, evidencing payment of federal and state taxes on income which is also offered to tax in India. Thus, the material evidence was available on record and ought to have been considered by the AO. 5.2.2 Relief under section 90 being a substantive right flowing from the DTAA, cannot be denied merely on technical or procedural grounds, once the fact of tax payment in the foreign jurisdiction is established. The CBDT Circular No. 333 dated 02.04.1982 also clarifies that DTAA provisions prevail over domestic law. Judicial authorities including Union of India v. Azadi Bachao Andolan (263 ITR 706, SC) and CIT v. Dinesh Vora (393 ITR 186, Bom HC) have consistently held that treaty relief must be interpreted liberally to avoid double tax....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tax of Rs. 1,96,82,460 paid in the USA. In order to substantiate its claim of taxes paid in the USA in respect of income earned in the USA, it is evident from the record that the assessee furnished its return of income for the Calendar Year 2022, which covered the period from 01/04/2022 to 31/12/2022, relevant for the year under consideration. However, for the balance period from 01/01/2023 to 31/03/2023, we find that the assessee could not furnish its return of income filed in the USA for the Calendar Year 2023. 8. During the hearing, the learned Authorised Representative ("learned AR") submitted that the return of income for the Calendar Year 2023 is now available with the assessee, and the assessee has also duly paid the taxes in the ....