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| The Tax Publishers2020 TaxPub(DT) 4558 (Del-Trib) INCOME TAX ACT, 1961
Section 90
Where assessee was working in UK for more than 183 days which was never disputed by revenue at any point of time and besides that revenue authorities were very well aware that the assessee has paid taxes in UK for the remuneration received in UK, then as per provisions of section 90(2) and Article 24 of the India-UK DTAA, claim made by the assessee for foreign tax credit was valid.
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Foreign tax credit - Allowability - Allegation of revenue that aggregate stay in UK for relevant previous year was less than 183 days -
Assessee challenged order of AO and contended that ignoring the provisions of India-United Kingdom ('UK') DTAA, AO wrongly disallowed foreign tax credit claimed under Article 24 of India-UK DTAA read with section 90. Assessee contended that revenue grossly erred in facts alleging that the aggregate stay in UK for the relevant previous year was less than 183 days disregarding the fact that the assessee stayed in UK for 241 days. Held: It was pertinent to note that assessee was working in UK for more than 183 days which was never disputed by revenue at any point of time. Besides that revenue authorities were very well aware that the assessee has paid taxes in UK for the remuneration received in UK. The assessee was a resident of India. Therefore, Article 16(2) does not apply in the present scenario. In fact, provisions of section 90(2) of the IT Act, 1961 and article 24 of the India-UK DTAA, imply that claim made by the assessee was valid and, therefore, revenue was not right in making addition in that respect.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, DELHI 'D' BENCH
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