TMI Blog2022 (1) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... t made any claim for credit towards the above stated withholding tax in earlier assessment years prior to the relevant assessment year 2014-15. We noted that the income has accrued in financial year 2013-14 relevant to assessment year 2014-15 and the assessee has correctly accounted this income in this very assessment year. Once the assessee has accounted for this income in this year and also claimed that tax credit, we are of the view that CIT(A) has rightly allowed the claim u/s.199 of the Act. We find no infirmity in the order of CIT(A) and hence the same is confirmed - Appeal filed by the Revenue is dismissed - ITA No.: 2391/CHNY/2018 - - - Dated:- 21-1-2022 - Shri Mahavir Singh, Vice President And Shri Manoj Kumar Aggarwal, Account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the year in which the income has been admitted, and credit for taxes of prior AYs cannot be given. 3. Briefly stated facts are that the assessee is engaged in the business of software development and has been doing services to M/s. Omega Simulation Co. Ltd, Japan since 2007. The assessee for the assessment year 2014-15 filed it return of income admitting taxable income of ₹ 3,01,43,990/- mainly consisting of profits from business operation at ₹ 2,75,05,990/-. The facts are that the assessee company, up to 31.03.2014 since 2007, has exported software to the extent of ₹ 12,55,06,206/- and payment have also been received in full. The assessee admitted the profit arising out of above exported software in the income tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2014-15, it correctly admitted the same as income and claimed the tax credit. The assessee explained that since the entire amount of TDS admitted as income in this assessment year only and paid taxes accordingly. But the AO was not convinced and accordingly he held that tax credit of only tax paid in Japan pertaining to the assessment during assessment year 2014-15 can be allowed to the extent of ₹ 31,18,928/- and denied the claim of tax credit of ₹ 91,31,745/-. Aggrieved, assessee preferred appeal before the CIT(A). 4. The CIT(A) after going through the submissions of the assessee and the remand report of the AO dated 23.04.2018 has noted the following conclusion in para 4.5.5 of his order, which reads as under:- (a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed a credit for the amount of any foreign tax paid by him in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India, in the manner and to the extent as specified in this rule: Provided that in a case where income on which foreign tax has been paid or deducted, is offered to tax in more than one year, credit of foreign tax shall be allowed across those years in the same proportion in which the income is offered to tax or assessed to tax in India. (4) No credit under sub-rule (1) shall be available in respect of any amount of foreign tax or part thereof which is disputed in any manner by the assessee: Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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