9911796707
TMI Blog2022 (1) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(3) of the Income Tax Act, 1961 (hereinafter the 'Act'). 2. The only issue in this appeal of Revenue is against the order of CIT(A) allowing credit for withheld tax for assessment years 2008- 09 to 2014-15 amounting to Rs. 1,22,50,673/-. For this, Revenue has raised the following grounds:- "2. The ld.CIT(A) erred in allowing credit for the Withheld Tax (WHT) for all the Assessment years from 2008-09 to 2014-15 amounting to Rs. 1,22,50,673/-, where as the Tax credit of Rs. 31,18,928/- only pertained to AY 2014-15. 2.1 The Ld.CIT(A) erred in holding that the Withholding Taxes (WHT) pertaining to AYs 2008-09 to AYs2014-15 should be given credit, in spite of the fact that the assessee has offered the corresponding income to tax in various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit in this year, as these were not taken credit in the earlier years. It was also explained that on receipt of tax credit certificates in the financial year 2013-14, the assessee admitted the same as business income and claimed tax credit u/s.90 of the Act, for whole of the amount of Rs. 1,22,50,673/- in the return of income filed. The AO during the course of assessment proceedings asked the assessee to explain why credit of taxes pertaining to earlier assessment years should not be denied. The assessee explained that Omega Simulation Co. Ltd., Japan has paid the withholding taxes during the financial year 2013-14, though it pertains to earlier years and gave tax credit certificates only during financial year 2013-14. The assessee on rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the Income Tax Return for the AY 2014-15." 5. In view of the above, the CIT(A) noted that the assessee is entitled to credit for withholding tax as per the provisions of section 90 & 91 of the Act and the relevant provision under the DTAA between India and Japan. The CIT(A) also noted that the assessee is entitled to credit for withholding tax as per CBDT notification dated 27.06.2017. Hence, he directed the AO to allow entire credit for withholding tax received in the financial year 2013- 14 relevant to this assessment year 2014-15 amounting to Rs. 1,22,50,573/-. Aggrieved, Revenue is in appeal before Tribunal. 6. We have heard rival contentions and gone through facts and circumstances of the case. The ld.AR for the assessee before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e us also produced the computation of income and balance sheet as on 31.03.2014, wherein the certificate of tax credit issued by Omega Simulation Co. Ltd., Japan which proves that taxes were deducted only during financial year 2013-14 under DTAA of Indo-Japan. Both the parties below have recorded concurrent finding that the assessee company has not 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 claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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