DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE -2(1),, PUNE vs. M/S. EMCURE PHARMACEUTIALS LTD,, PUNE

आदेश / ORDER

PER R.S.SYAL, VP : These two appeals by the Revenue relating to the assessment years 2011-12 and 2012-13 emanate from the common order dated 28.02.2018 passed by the ld. CIT(A). Since the issues raised in these appeals are identical, we are, therefore, proceedings to dispose them off by this consolidated order for the sake of convenience. 2. The grievance of the Revenue is against the direction of the ld. CIT(A) to allow credit for Foreign Tax after

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verification of the claim in contravention to section 251(1) of

the Act.

year 2011-12 is that the assessee gave certain unsecured loans

to its subsidiary company, namely, Emcure Pharmaceuticals,

USA Inc. The Foreign company deducted tax at source on the

amount of interest on loan credited to the assessee, which was

eventually paid in a later year. The assessee offered interest

income in its return of income and also claimed credit for

TDS. The AO, in the order passed u/s.143(3), did not allow

credit for the TDS. Thereafter, the assessee filed rectification application u/s.154, inter alia, requiring the AO to grant credit

for such TDS. The AO in the instant proceedings arising, out

of application u/s.154, did not accept the contention of the

assessee. The ld. CIT(A), however, allowed the assessee’s

claim. Aggrieved thereby, the Revenue has come up in appeal

before the Tribunal.

through the relevant material on record. It is seen that the AO,

in his order u/s.143(3), did not accept the assessee’s claim for

allowing credit for the TDS against the interest income for the

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year under consideration, which was offered by the assessee in

this year itself. The assessee assailed this issue in the second

appeal before the Tribunal. Vide order dated 27-08-2019, the

Tribunal, relying on certain decisions, accepted the assessee’s

claim of granting tax credit in respect of the interest income

that was shown by the assessee in the year under

consideration. In view of the fact that the Tribunal accepted

the assessee’s contention in the proceedings arising out of the

order passed u/s.143(3), the instant appeal on the very same

issue, flowing from the order passed u/s.154, has virtually

become infructuous. Respectfully following the order passed

by the Tribunal for the same year allowing Foreign Tax credit

in respect of interest income offered during the year under

consideration, we uphold the impugned order on this score.

For this year also, the AO did not allow credit for Tax credit

on interest income credited by the foreign entity. The assessee

moved application u/s.154 and the instant proceedings arose

out of such application. The assessee assailed the order

u/s.143(3) before the higher authorities. The Tribunal

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accepted the assessee’s contention and the ld. CIT(A) in the

impugned order has followed the view point of the Tribunal in

allowing the assessee’s claim. Since the facts and

circumstances of the instant appeal are similar to those for the

assessment year 2011-12, following the view taken

hereinabove, we uphold the impugned order.

Order pronounced in the Open Court on 20th January,

2022.

Sd/- Sd/- (S.S.VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT पुणे Pune; �दनांक Dated : 20th January, 2022 Satish

आदेश क� ��त�ल�प अ�े�षत/Copy of the Order is forwarded to: 1. अपीलाथ� / The Appellant; 2. ��यथ� / The Respondent; 3. The CIT(A)-12, Pune 4. The Pr.CIT (Central), Pune िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “A” / DR ‘A’, 5. ITAT, Pune गाड� फाईल / Guard file 6.

आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune

5 ITA Nos. 968 & 969/PUN/2018 M/s. Emcure Pharmaceuticals Ltd..,

Date 1. Draft dictated on 19-01-2022 Sr.PS 2. Draft placed before author 19-01-2022 Sr.PS 3. Draft proposed & placed before the JM second member 4. Draft discussed/approved by Second JM Member. 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *