2020 (11) TMI 178

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..... wing the foreign tax credit claimed under Article 24 of India- UK DTAA read with Section 90 of the Act amounting to Rs. 4,075,122. 2. That CIT(A) has grossly erred in facts in stating that the aggregate stay in UK for the said previous year is less than 183 days disregarding the fact that the Appellant stayed in UK for 241 days. 3. That AO/ CIT(A) have grossly erred in facts and law in concluding that the Appellant should have availed exemption from tax in UK under Article 16(2) of the India-UK DTAA ignoring the fact that Article 16(2) is not at all applicable in UK. 4. That AO/ CIT(A) have erred in facts and law in levying interest under Section 234B and Section 234C of the Act amounting to Rs. 530,352 and Rs. 54,526 respectively .....

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..... AR submitted that as per the provisions of Article 24 of the India- UK DTAA were income of an Indian Tax resident is also reliable to tax in UK, India shall allow a credit for the taxes paid in the UK against the Indian Taxes payable in respect of the double tax income. Further, the tax credit would be limited to the proportionate taxes payable on the double tax income in India. Hence, all combined reading of the provisions of Section 90(2) of the Income Tax Act, 1961 and Article 24 of the India-UK DTAA, it may be held that as the assessee's income has been double tax i.e. in India as well as in the UK, the provisions of the India-UK DTAA would be applicable to him as the same are more beneficial. The tax credit can be claimed in India unde .....

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..... case. 6. The Ld. DR submitted that the Assessing Officer as well as the CIT(A) has rightly made additions as the assessee's stay in the United Kingdom was more than 183 days and the provisions of Section 90 of the Income Tax Act will be applicable in the present case. 7. We have heard both the parties and perused the material available on record. It is pertinent to note that the assessee was working in UK for more than 183 days which was never disputed by the Revenue at any point of time. Besides this the Revenue authorities are very well aware that the assessee has paid taxes in UK for the remuneration received in UK. The assessee is a resident of India. Therefore, Article 16(2) does not apply in the present scenario. In-fact, if we go t .....

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