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2008 (11) TMI 281 - ITAT BOMBAY-LRectification u/s.154 - credit for TDS on foreign income not given - DTAA with UK as well as USA - Whether the assessee is entitled to the credit for TDS on such foreign income - TDS deducted in UK and USA on the income which was offered by the assessee in her return of income - CIT(A) allowed the credit of TDS - HELD THAT:- Pursuant to s. 90 the Government of India entered into DTAA with UK as well as USA. Accordingly the reliance of the AO on the provisions of ss. 4, 190 and 191 is meaningless in as much as the specific provisions have been contained in this regard in both the treaties. The ld CIT(A) has accepted the assessee's contention that the amount of TDS in UK and USA constitutes 17.42 per cent of the gross professional fees received by the assessee and the average rate of tax on her gross total income for the assessment year under consideration comes to 30 per cent under the provisions of the IT Act, 1961. Even if we consider the claim of deduction u/s. 80RR at 15 per cent of the professional income derived by the assessee in exercise of her profession abroad, the proportionate rate of Indian tax on such income remains at a still higher level. No contradiction has been pointed out by the ld DR in this working. When art. 24(2) of DTAA between India and UK and art. 25(2) of DTAA between India and USA are read in conjunction with s. 90, it becomes abundantly clear that the assessee was entitled to the credit for TDS on foreign income, which income was duly offered for taxation in India. We hardly find any debate or dispute on the allowing of such credit which could preclude the assessee from moving application for rectification before the AO u/s.154. We, therefore, uphold the view taken by the ld CIT(A). In the result, the appeal is dismissed.
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