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2017 (11) TMI 207 - AT - Income TaxDenying the Maryland State Tax credit in the return of income - salary earning from USA - denial of claim in absence of any revised return of income filed - whether such taxes are not covered within Article 2 of the Double Taxation Avoidance Agreement entered into between India and USA - whether state taxes on income paid by the assessee in the USA are eligible for tax credit? - Held that:- Merely because a judicial precedent is challenged in further appeal, the precedence value of such a judicial precedent does not get diluted. The stand of the CIT(A), in conscious disregard of a binding judicial precedent, cannot but be condemned. The Co-ordinate Bench of this Tribunal in the case of Tata Sons Ltd vs. DCIT [2011 (2) TMI 1528 - ITAT MUMBAI], speaking through one of us, i.e. AM, has decided the issue in favour of the tax payer. - As Section 91 does not discriminate between state and federal taxes, and in effect provides for both these types of income taxes to be taken into account for the purpose of tax credits against Indian income tax liability, the assessee is, in principle, entitled to tax credits in respect of the same - Decided in favour of assessee for statistical purposes.
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