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2023 (11) TMI 441 - ITAT CHENNAIForeign tax credit u/s 90/90A - claim of additional/redetermined withholding tax - withholding done by the client initially was at the rate of 10% of the royalty paid and subsequently, the Australian company redetermined the withholding rate to be 15% - HELD THAT:- Since the Australian Tax Authorities revised the rate of withholding tax from 10% to 15% vide there letter dated 01.04.2019, the additional withholding tax @ 5% was deducted and paid to the Australian Government on 25.06.2019 and made the claim during the course of assessment proceedings. Moreover, the claim does not impact the income of the assessee but only relates to giving credit for additional taxes paid on the income already declared. Once credit for foreign withholding tax has been allowed @ 10%, the subsequent revisional rate of tax is also required to be allowed. Considering all we are of the opinion that the CIT(A) has rightly directed the Assessing Officer to allow the claim of additional withholding tax paid by the assessee. Thus, we find no reason to interfere with the order passed by the ld. CIT(A) and accordingly, the appeal filed by the Revenue is dismissed.
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