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2022 (1) TMI 276 - AT - Income TaxDisallowance of “Scholarship Expenses” - Expenses claimed under the head ‘Assistance to Law Students’ - allowable business expenses or not? - HELD THAT:- As decided in own case [2021 (2) TMI 1239 - ITAT DELHI] in the case of the professionals, the way they promote themselves, is changing very fast and the benefits of such expenditure are huge and wide. Therefore according to us the impugned expenditure incurred by the assessee is a revenue expenditure allowable u/s. 37 (1) of the income tax act. We do not subscribe to the view of the learned CIT - A these expenditure is capital in nature. The expenditure incurred by the assessee is the routine day-to-day expenditure incurred by the assessee for promoting his professional profile. These expenditure cannot be held to be capital expenditure in nature as no fresh new fixed assets is created by paying the scholarship sum. - Decided in favour of assessee. Credit for the TDS denied - HELD THAT:- We find that issue was raised by the assessee before CIT(A) and CIT(A) did not adjudicate the issue for the reason that assessee had filed a rectification application before the AO. Before us, it is the submission of the assessee that matter may be remitted to AO with necessary directions for the necessary verification and thereafter giving the credit of the TDS. Considering the submissions of the AR, we direct the AO to grant the credit for the TDS after necessary verification and in accordance with law. Thus ground of assessee is allowed for statistical purposes. Relief u/s 90 for the taxes paid in the United Kingdom (UK) - claim of proportionate tax credit u/s 90 - HELD THAT:- As the overseas income earned by the assessee in UK has been offered to tax by the assessee in India and out of the total tax paid by assessee in UK, assessee is claiming credit u/s 90 of the Act since the corresponding amount of income has already been offered to tax in India and has also been accepted by Revenue. We are of the view that the credit of the taxes paid on such income deserves to be allowed. We therefore restore the issue back to the file of AO and direct him to allow the credit of the foreign taxes paid as claimed by the assessee u/s 90 of the Act as per the provision of Act and in accordance with law. Needless to state that AO shall grant adequate opportunity of hearing to the assessee. Assessee is also directed to promptly furnish all the details called for by the AO. We thus direct accordingly. Thus the ground of assessee is allowed.
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