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2020 (6) TMI 471 - AT - Income TaxAddition u/s 40(a) (ia) - Short deduction of tax at source which was not reported at the time of filing return - HELD THAT:- As decided in own case [2019 (12) TMI 1031 - ITAT KOLKATA] if there is any short-fall due to any difference of opinion as to the taxability of any item or the nature of payment falling under various TDS provisions, the assessee could be declared to be an assessee in default under section 201, but no disallowance could be made by invoking the provisions of section 40 (a)(ia). Addition u/s 14A r.w.r 8D of the Rules - HELD THAT:- As decided in own case [2019 (12) TMI 1031 - ITAT KOLKATA] uphold the impugned order of the ld. CIT(Appeals) deleting the disallowance made by the Assessing Officer under section 14A read with Rule 8D. MAT applicability - Book profit adjustment u/s 115JB - HELD THAT:- As decided in own case [2019 (12) TMI 1031 - ITAT KOLKATA] that provision of section 115JB is not applicable in the case of the assessee being a Banking company for the year under consideration. Therefore, grounds raised by the Revenue are dismissed. Relief u/s 91 in respect of foreign taxes paid by the appellant - rental income earned from House property in Singapore which is not taxable in India as per Article 6 of DTAA applicable between the Government of the Republic of India and the Government of the Republic of Singapore - HELD THAT:- During the year the appellant had paid foreign taxes on the profits derived by the Hongkong Branch. Since there was no Double Taxation Avoidance Agreement between India and Hongkong, in terms of section 91, the appellant is entitled to claim credit of foreign taxes paid subject to the limits prescribed therein. The extent of relief u/s.91 is computed as a percentage of such’doubly taxed income'. The percentage to be applied is the lower of the’Indian rate of tax’and the’rate of tax of the said country'. When credit for tax payments is to be given there, is no distinction in the tax liability which is credited through normal computation of income or through section 115 JB. Therefore, credit for tax paid in foreign country should be allowed even when the tax liability is raised u/s 115JB. Therefore, the AO is directed to allow this credit u/s 91 - CIT(A) allowed the claim of the assessee correctly. - Decided against revenue
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